Question: Having some problems with bonds. Can anyone explain the following? On January 1, 201X, Bredbay, Inc. issued 10-year, $2,000,000 face value, 6% bonds, at par.Each

Having some problems with bonds. Can anyone explain the following?

On January 1, 201X, Bredbay, Inc. issued 10-year, $2,000,000 face value, 6% bonds, at par.Each $1,000 bond is convertible into 16 shares of Bredbay common stock.Bredbay's net income in 201X was $325,000, and its tax rate was 35%.The company had 100,000 shares of common stock outstanding throughout 201X.None of the bonds were converted in 201X. a.Compute earnings per share for 201X b.Computer diluted earnings per share for 201X.

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