The 8% $30 million convertible loan note was issued on 1 April, 2010 at par. Interest is payable annually in arrears on 31 March each year. The loan note is redeemable at par on 31 March, 2013 or convertible into equity shares at the option of the loan note holders on the basis of 30 equity shares for each $100 of loan note. The companys finance director has calculated that to issue an equivalent loan note without the conversion rights it would have to pay an interest rate of 10% per annum to attract investors. The present value of $1 receivable at the end of each year, based on discount rates of 8% and 10% are: 8% 10% End of year 1 093 091 2 086 083 3 079 075 What value should appear as the interest charge for the year ended 31 March, 201