Calculate all the questions by using the real formula from ACCA-F9

21. A company has issued 9% convertible bonds which are due to be redeemed in three years' time. They are currently quoted at $90 per $100 nominal. The bonds can be converted into 25 shares in five years' time. The share price is currently $3.50 and is expected to grow at a rate of 3% pa. Assume a 30% rate of tax. Calculate the cost of the convertible debt? 22. A company has issued 10% convertible bonds which are due to be redeemed in three years' time. They are currently quoted at $90 per $100 nominal. The bonds can be converted into 25 shares in five years' time. The share price is currently $3.50 and is expected to grow at a rate of 3% pa. Assume a 30% rate of tax. Calculate the cost of the convertible debt? 23. Acompany has issued 11% convertible bonds which are due to be redeemed in three years' time. They are currently quoted at $90 per $100 nominal. The bonds can be converted into 25 shares in five years' time. The share price is currently $3.50 and is expected to grow at a rate of 3% pa. Assume a 30% rate of tax. Calculate the cost of the convertible debt? 24. company has issued 12% convertible bonds which are due to be redeemed in three years' time. They are currently quoted at $90 per $100 nominal. The bonds can be converted into 25 shares in five years' time. The share price is currently $3.50 and is expected to grow at a rate of 3% pa. Assume a 30% rate of tax. Calculate the cost of the convertible debt? 25. Acompany has issued 13% convertible bonds which are due to be redeemed in three years' time. They are currently quoted at $90 per $100 nominal. The bonds can be converted into 25 shares in five years' time. The share price is currently $3.50 and is expected to grow at a rate of 3% pa. Assume a 30% rate of tax. Calculate the cost of the convertible debt? Prepared by SUNG SOPHORS Page 2 26. A company has issued 14% convertible bonds which are due to be redeemed in three years' time. They are currently quoted at $90 per $100 nominal. The bonds can be converted into 25 shares in five years' time. The share price is currently $3.50 and is expected to grow at a rate of 3% pa. Assume a 30% rate of tax. Calculate the cost of the convertible debt? 27. Acompany has issued 15% convertible bonds which are due to be redeemed in three years' time. They are currently quoted at $90 per $100 nominal. The bonds can be converted into 25 shares in five years' time. The share price is currently $3.50 and is expected to grow at a rate of 3% pa. Assume a 30% rate of tax. Calculate the cost of the convertible debt? 28. A company has issued 16% convertible bonds which are due to be redeemed in three years' time. They are currently quoted at $90 per $100 nominal. The bonds can be converted into 25 shares in five years' time. The share price is currently $3.50 and is expected to grow at a rate of 3% pa. Assume a 30% rate of tax. Calculate the cost of the convertible debt