Illini Company issued $100,000 three-year 8% convertible bonds on 1/1/2016 for $100,000. Each $1,000 bonds can be converted into 50 shares of Illini's common stock. The fair value of Illini's common stock was $30 per share on 1/1/2016. How much is the beneficial interest with the convertible bonds?

Answer rating: 100% (QA)

To determine the beneficial interest associated with the convertible bonds we need ... View the full answer