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Your firm issues $2 million of comvertible bonds on 1/1/2022 for $2,200,000. The annual effective interest rate on the bonds is 9% and the firm

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Your firm issues $2 million of comvertible bonds on 1/1/2022 for $2,200,000. The annual effective interest rate on the bonds is 9% and the firm pays 11% cash interest on each subsequent 1/1. On 1/1/2025, the bondholders convert the bonds into 50,000 shares of stock and receive accrued interest on that date in cash. The rrarket value of the stock is $40 per share on the conversion date, and its par value is $1 per share. The first three rows of the amortization table are

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