What is the equity component of the original issuance

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Question - An entity issued 2,000 convertible bonds with P3,000 face amount per bond. The bonds mature in three years and are issued at 105. Interest is payable annually every December 31 at a nominal 8% interest rate. Each bond is convertible at anytime up to maturity into 150 shares with par value of P10. It is reliably determined that the bonds would sell only at P5,780,000 without the conversion privilege. What is the equity component of the original issuance of the convertible bonds?

Reference no: EM132975115

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