Question: On January 1 , 2 0 2 3 , Crane Ltd . issued 1 , 1 5 0 5 - year, 1 1 % convertible

On January 1,2023, Crane Ltd. issued 1,1505-year, 11% convertible bonds at par of $1,000, with interest payable each December 31. Each bond is convertible into 100 common shares, and the current fair value of each common share is $6. Similar straight bonds carry an interest rate of 13%.
Click here to view the factor table.
(a)
Calculate the PV of the debt component by itself. Calculate using any of the following methods: (1) factor tables, (2) a financial calculator, or (3) Excel function PV.(For calculation purposes, use 5 decimal piaces as displayed in the factor table provided. Round answers to 0 decimal places, e.g.5,275.)
PV of the debt component $
On January 1 , 2 0 2 3 , Crane Ltd . issued 1 , 1

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