P 16-9 on september 30,2017, Gargiola inc. Issued 4millions of 10 year, 8% convertible bonds for...

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Part b

PV	$ 4,200,000	Bond value without conversion right
I
N	20	Period (10*2)
PMT	$ -160,000	4million*4%
FV	$ -4,000,000	Face Value
Type	-
	RATE(N,PMT,PV,FV,Type)
	3.6436%	Effective Rate


Part c


	Date	Cash Paid 4%	Effective Interest 3.6436%	Premium Amortization	Carrying Value
		*4m4%**

	Sep 30 2017				$ 4,200,000
	Mar 31, 2018	$ 160,000	$ 153,031	$ 6,969	$ 4,193,031
	Sep 30 2018	$ 160,000	$ 152,777	$ 7,223	$ 4,185,808
	Mar 31, 2019	$ 160,000	$ 152,514	$ 7,486	$ 4,178,323
	Sep 30 2019	$ 160,000	$ 152,241	$ 7,759	$ 4,170,564
	Mar 31, 2020	$ 160,000	$ 151,959	$ 8,041	$ 4,162,523
	Sep 30 2020	$ 160,000	$ 151,666	$ 8,334	$ 4,154,188
	Mar 31, 2021	$ 160,000	$ 151,362	$ 8,638	$ 4,145,550
	Sep 30 2021	$ 160,000	$ 151,047	$ 8,953	$ 4,136,598
	Mar 31, 2022	$ 160,000	$ 150,721	$ 9,279	$ 4,127,319
	Sep 30 2022	$ 160,000	$ 150,383	$ 9,617	$ 4,117,702

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