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On January 1,2023, MacGregor Ltd. issued 800, fiveyear,9% convertible bonds at par of $1,000, with...

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Accounting

On January 1,2023, MacGregor Ltd. issued 800, fiveyear,9% convertible bonds at par of $1,000, with interest payable each December 31. Each bond is convertible into 100 common shares, and the current fair value of each common share is $6. Similar straight bonds carry an interest rate of 11%. Calculate the PV of the debt component by itself. ex, answer should be around 700k

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