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Using (1) a financial calculator or (2) Excel functions, calculate the effective rate (yield rate)...

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Accounting

Using (1) a financial calculator or (2) Excel functions, calculate the effective rate (yield rate) for the bonds. (Round answer to 4
decimal places, e.g.5.2500%.)
Effective rate
%
eTextbook and MediaOn September 30,2023, Crane Inc. issued $3,220,000 of 10-year, 8% convertible bonds for $3,703,000. The bonds pay interest on
March 31 and September 30 and mature on September 30,2033. Each $1,000 bond can be converted into 80 no par value common
shares. In addition, each bond included 20 detachable warrants. Each warrant can be used to purchase one common share at an
exercise price of $15. Immediately after the bond issuance, the warrants traded at $3 each. Without the warrants and the conversion
rights, the bonds would have been expected to sell for $3,381,000.
On March 23,2026, half of the warrants were exercised. The common shares of Crane were trading at $20 each on this day.
Immediately after the payment of interest on the bonds, on September 30,2028, all bonds outstanding were converted into common
shares. Assume the entity follows IFRS.
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