On 1 March 20X1 an entity issues 3,000 convertible $1,000 bonds (a compound instrument) at...
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Accounting
On 1 March 20X1 an entity issues 3,000 convertible $1,000 bonds (a compound instrument) at par. Interest is payable annually in arrears at 7%. The prevailing market rate of interest at the date of issue is 9%. The bonds are redeemable on 28 February 20X4. What is the equity component of the instrument calculated under IAS 32?
Please select the right answer.
NIL
$151,940
$2,848,060
$3,000,000
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