Question: Nero Solutions Co . issued an $ 8 1 0 , 0 0 0 , 6 % , three - year bond for $ 8

Nero Solutions Co. issued an $810,000,6%, three-year bond for $816,000. The bond pays interest annually, at each year-end. At maturity, the bond can be repaid in cash or converted to 61,000 common shares at the investors option. The market interest rate for bonds of similar term and risk, but that are not convertible, is in the range of 7%.

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