What amounts are assigned to the bonds

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On February 28, 2020, Ox issued P3,000,000 of its 10% non-convertible bonds at 104, due February 28, 2025. Each P1,000 bond was issued with 20 non-detachable share warrants, each of which entitles the holder to purchase for P40, one ordinary share of Ox, par value P30. If sold without the warrants, the bonds would yield 12%. The interest on the bond is payable annually. (5%) (2 items &..;@2.5 points each)

problem 1: What amounts are assigned to the bonds (debt component) and to the warrants (equity component), respectively on February 28, 2020?

problem 2: What if in the above, all of the warrants were exercised on June 30, 2021, what amount of share premium from ordinary shares would arise from this exercise?

Reference no: EM132853346

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