Description of several financial instruments follows:
Case 1 Convertible subordinated bonds payable, entitled to annual cash interest at 5%, paid semi-annually. At maturity, the bonds may be settled at the investor’s option through the issuance of common shares using an exchange price of $5 per share. Alternatively, the investor may choose to be repaid in cash.
Case 2 Convertible subordinated bonds payable, entitled to annual cash interest at 5%, paid semi-annually. At maturity, the bonds may be settled at the issuer’s option through the issuance of common shares using an exchange price of $5 per share. Alternatively, the issuer may choose to repay principal in cash.
Case 3 Convertible subordinated bonds payable, entitled to annual cash interest at 5%, paid
semi-annually. At maturity, the bonds may be settled at the issuer’s option through the
issuance of common shares using the current market price of the shares. Alternatively, the
issuer may choose to repay principal in cash.
Case 4 Convertible subordinated bonds payable, entitled to annual cash interest at 5%, paid
semi-annually. At maturity, the bonds may be settled at the investor’s option through the
issuance of common shares using the current market price of the shares. Alternatively, the
investor may choose to be repaid in cash.
Case 5 Series F second preferred shares, carrying a fixed cumulative dividend of $1 per share. The shares must be redeemed by the company at a price of $50 per share, plus dividends in arrears, if any, on 31 December 20X1.

Required:
Classify each of the above items as a financial liability, equity instrument, or compound instrument (part debt and part equity).