Libertine Co. issued $10,000,000 of 9%, 10-year, convertible bonds on January 1, 2020.  Interest is paid annually on December 31.  At the time of the bonds issuance, the market rate for non-convertible bonds was 10%.  Each $1,000 bond is convertible into 15 common shares.  In 2025, half of the bondholders decided to convert their bonds into common shares.  How many shares were issued as a result of the conversion?   Question 10 options:   75,000   140,783   15,000   150,000

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
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Libertine Co. issued $10,000,000 of 9%, 10-year, convertible bonds on January 1, 2020.  Interest is paid annually on December 31.  At the time of the bonds issuance, the market rate for non-convertible bonds was 10%.  Each $1,000 bond is convertible into 15 common shares.  In 2025, half of the bondholders decided to convert their bonds into common shares.  How many shares were issued as a result of the conversion?

 

Question 10 options:

 

75,000

 

140,783

 

15,000

 

150,000

 

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