Question $2(25$ marks$)$ Case Study Question On January $1,20$X$1,$ Delta Ltd issued $$5$ million of $6\%$ convertible bonds at par. The bonds are redeemable in three years at par or convertible into $40$ shares per $$100$ of debt. A similar non$-$convertible instrument would require a $9\%$ interest rate. Required: a$.$ Calculate the present value of the liability component at initial recognition using a $9\%$ discount rate. Assume interest is paid annually $(10$ Marks$)$ b$.$ Determine the equity component of the convertible bonds $(5$ Marks$)$ c$.$ Calculate the carrying amount of the liability at December $31,20$X$1(5$ Marks$)$ d$.$ Discuss how the classification of the convertible bond affects financial statement ratios such as gearing and interest cover $(5$ Marks$)$