Using $(1)$ a financial calculator or $(2)$ Excel functions, calculate the effective rate $($yield rate$)$ for the bonds. $($Round answer to $4$

decimal places, e$.$g$.5\mathrm{.}2500\%.)$

Effective rate

$\%$

eTextbook and MediaOn September $30,2023,$ Crane Inc. issued $$3,220,000$ of $10-$year, $8\%$ convertible bonds for $$3,703,000.$ The bonds pay interest on

March $31$ and September $30$ and mature on September $30,2033.$ Each $$1,000$ bond can be converted into $80$ no par value common

shares. In addition, each bond included $20$ detachable warrants. Each warrant can be used to purchase one common share at an

exercise price of $$15.$ Immediately after the bond issuance, the warrants traded at $$3$ each. Without the warrants and the conversion

rights, the bonds would have been expected to sell for $$3,381,000.$

On March $23,2026,$ half of the warrants were exercised. The common shares of Crane were trading at $$20$ each on this day.

Immediately after the payment of interest on the bonds, on September $30,2028,$ all bonds outstanding were converted into common

shares. Assume the entity follows IFRS.