Which equity component of compound financial instrument is

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Problem 1: The equity component of a compound financial instrument is determined

a. by allocating the issue price to the liability and equity components based on their relative fair values.

b. by allocating the equity component its fair value.

c. by deducting the fair value of the liability component without the equity feature from the issuance price of the compound instrument.

d. none of these

Reference no: EM132995718

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