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On January 1, 2020, Kabond issued a 3-year bond with conversion feature, 9% P1,000,000 at...

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Finance

On January 1, 2020, Kabond issued a 3-year bond with conversion feature, 9% P1,000,000 at par. Without the conversion feature, the bonds would have sold for 89. Interest is payable semi-annually every June 30 and December 31. On May 30, 2021 the bonds were retired for P1,030,000. At retirement date, the bonds were selling at 91 without the conversion feature. How much was the reduction in the bond conversion privilege at retirement date?

17. On January 1, 2020, Ribond issued a 5-year 12%, P10,000,000 with detachable share warrants. Each P2000 bond is attached with 3 warrants. Interest is payable annually every January 1. The yield rate similar bonds with equity components is 15%. The bonds were selling for P11,597,084, ex-warrants, which will yield 8% interest. The bondholders can purchase 1, P180 par value, ordinary share for P250, for every 2 warrants surrendered. On April 27, 2023, 1,500 bondholders exercised their right to purchase ordinary shares. What is the net increase in equity on date of exercise?

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