Question: Roche Group (CHE) issues 2,000 convertible bonds at the beginning of 2019. The bonds have a four-year term with a stated rate of interest of

Roche Group (CHE) issues 2,000 convertible bonds at the beginning of 2019. The bonds have a four-year term with a stated rate of interest of 8 percent and are issued at par with a face value of ?1,000 per bond (the total proceeds received from issuance of the bonds are ?2,000,000). Interest is payable annually at December 31. Each bond is convertible into 250 ordinary shares with a par value of ?1. The market rate of interest on similar non-convertible debt is 12 percent.

Present Value of 1 + 335 TABLE 6-2 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) TABLE 6-2 PRESENT VALUE OF 1 415 95h 10% Perioda 29% 29596 1156 97087 96154 95238 91743 90909 125% 08039 .97561 14260 00703 94340 84168 82645 90090 1526 Period 92456 81162 89286 190117 95181 89000 86957 93232 92850 81514 88900 86384 77218 76132 79719 85480 82270 83002 75614 90698 98869 70843 68301 73119 65873 71178 92385 65752 B8385 86261 82193 78353 79209 64993 62092 9345 635152 90573 74726 67175 12056 50743 49718 86230 83748 79031 74622 38797 70496 59627 58447 53484 61303 75909 71068 3017 54703 51316 50663 87056 84127 73069 67684 68506 18186 43233 78941 58349 45235 85319 62076 70269 64461 62741 50187 46851 37594 76642 54027 13393 80073 10388 8:3676 67656 61391 59190 46043 42410 .39092 32690 50d25 82035 78120 74409 3606 65830 42241 38654 35218 28426 32107 24719 76214 72242 64958 .56468 52879 30753 35049 162460 55684 42480 31728 28748 12 78849 74856 70138 -49697 36554 31863 28584 21494 13 77303 72542 68095 50057 53032 32618 20906 25658 18601 14 75788 70773 :66112 57748 50507 46884 367 70 25751 44230 29925 26333 22917 23199 ,16253 15 64186 56526 48102 34046 .69047 27454 23939 -20462 74301 41727 14133 1424 20900 18270 12280 15 16 72845 87362 62317 53391 45811 30365 60502 51337 43630 20789 25187 21763 18829 17 .65720 37136 23107 19785 16312 71416 10887 18 70016 64117 50739 49363 41552 21027 18983 14564 35034 21199 17985 09203 47464 .39573 15282 13004 19 68643 92453 57029 $3051 19449 16351 08081 45639 37689 23171 13768 20 67297 81027 65368 31180 21456 17843 14884 11811 07027 12403 10367 061 10 20 .65978 -59539 .53755 43883 35894 20416 16370 13513 42196 34185 11174 58086 52189 09256 64684 22751 .05315 18394 15018 12285 10087 ,08204 23 .04620 63416 56670 .50689 40573 32557 26180 22 17032 13778 11 168 09089 07379 04017 24 62172 55288 419193 39012 31007 24698 12641 10153 23 15770 08170 25 60953 53939 47761 37612 29530 06588 23300 09230 03493 24 14602 11597 07361 05882 03038 25 20 59758 52623 46369 36069 28124 21981 13520 10639 08391 06631 .05252 27 58586 51340 45019 34682 26785 20737 02642 12519 09761 07628 26 .05974 33348 25509 04689 57437 50086 43708 19563 .02297 28 11501 08955 06834 05382 04187 01997 29 56311 48868 42435 132005 24295 18456 10733 08216 06304 N288 04849 30 55207 7674 41 189 30832 23138 03738 17411 01737 1-9938 07537 05731 04368 03338 01510 31 54125 40511 39999 29646 22036 16425 06915 .05210 .03935 02980 01313 32 .53063 45377 38834 28506 20987 15486 31 06344 .0473B 03545 .02661 01142 33 52023 44270 37703 27409 19987 14619 07689 .05820 .04306 03194 .02376 60993 33 34 51003 43191 36604 26365 19035 13791 07305 05340 03914 02878 02121 00864 34 35 50003 42137 .35538 25342 18129 13011 04899 03558 02592 01894 00751 35 30 49022 41 109 34503 24367 17266 12274 04494 03235 02335 01691 00653 36 37 48061 40107 33498 23430 16444 11579 05789 04123 02941 02104 01510 00568 47119 39128 32523 22529 15661 10924 15369 03783 02574 .01896 01348 .00484 38 46195 38174 31575 21662 .14915 10306 34071 03470 02430 01708 01204 00429 189 45289 37243 30656 20829 14205 .09722 4603 03184 02210 01538 01075 00373Present Value of an Ordinary Annuity of 1 . 339 338 Chapter 6 Accounting and the Time Value of Money TABLE 6-4 PRESENT VALUE OF AN ORDINARY ANNUITY OF : TABLE 6-4 PRESENT VALUE OF AN DROWARY ANNUITY OF 1 PVF-ON 596 109% 1156 95238 1230 15% Ponods Barioda 36154 91743 90909 90090 191347 1.58609 85941 94340 92593 98036 07561 1.63329 1:75911 1:73554 85286 80957 2 77509 2.72325 78326 171252 2 53130 2 48685 1.6905 1.62571 1:32150 9 #2861 2 98368 3.62980 3.54595 2.57301 2 53710 244371 3 29972 3.16986 240183 2.28323 3 80773 476197 3/1710 4.45182 1 32948 3.46511 351213 3.10245 3 68965 3,03735 2 85498 4.67971 4.21235 3.79079 3:99271 3.69590 9.60478 4 71048 3.35218 5.24214 5.07569 4,91732 4.48592 6:50810 541719 5.78637 1.62288 4.35626 # 23054 5.03295 4 86842 4.11141 2 78448 6:34938 020028 6.00205 6:47199 6.46321 5.58238 5 20687 4.71220 6.73274 4.56376 4.16042 7:42548 7:17014 201069 7.10782 6.20929 7 43633 $ 14564 5,53482 5.33493 5.14612 5.99525 5 75902 4.96764 4 48732 7 07087 7 70811 6:80169 5.53705 7:72173 # 24089 5 32825 4.77158 #.98239 8 75206 1:50020 8.1 1090 7.36009 671008 6.41766 6-14457 5.88923 5.85022 5.01877 070685 9.51421 1 25262 8.76048 B.30641 7.BBB87 13896 6.80519 6.49506 6.20652 9.15400 9.38507 8.86325 5.93770 5.23371 10.57594 10.25776 8,38384 7 53608 7.16073 6.81369 6/49236 9.98565 9.39357 7.48690 6.19437 7 10336 5,42062 1 134837 10.98319 10.63496 8.85268 190378 6,74987 6.42355 5 58315 12 10825 11 69021 (1:20607 10.56312 9.89864 9:29438 824424 7.78615 7-36689 6.98187 6.62817 5.72448 11.11838 12.84926 11.93794 10.37968 12:38138 9.71225 8 85948 8.06069 7.60608 7.19087 6 81086 5.84737 13:57771 13:05500 12.56110 1 1,65230 10.83777 10:10590 8.31256 7.82371 7.37916 16 8 85137 6.97399 11 27407 8.54363 8.02155 5.85424 14 29187 13.71220 13 16812 12 16567 10.47728 9.12164 7 54879 7.$1963 13 75351 12 65930 11.68958 9 37189 8.75583 14.09203 14,35336 10.82760 8.20141 6.04716 18 7.70162 7:24967 12:08532 8.95012 8.38492 6.12797 19.13894 19 15:57846 14.97889 14 32380 11.15812 # 60380 7.83929 736578 6-19823 12.46221 9.12855 20 16.35143 15 58916 14 87747 13.59033 11 48992 981815 8.51356 7.96383 7 46944 6:25933 16 18456 15,41502 14.02916 12.821 15 17:01121 11.76408 10:01680 9.29224 8.64869 8.07507 7 58200 13.16300 9.44243 6.31246 17 85805 16.76541 16.93602 14 45112 12.04158 10:20074 8.77154 8.17574 7.64465 9.58021 6:35856 18:29220 17.33211 16,44361 14 85684 13.48857 12.30336 10:37106 B.88322 8.26643 7.71843 6.39884 18,91393 17.88409 16.93554 15 24696 13.79864 12.55036 10.52876 9.70661 6.98474 8.34814 7.78432 6.43377 24 19.52346 18 42438 17 41315 15.62208 14.09394 12.78336 10.67478 9.82258 9.07704 B.42174 7 84314 6.46415 20.12104 18 95061 17:87684 15:98277 14.37519 13.00317 10:80998 9.92897 9.16095 B.48806 7.89568 6.49056 20 20 70690 19 46401 18.32703 16.32959 14.64303 13.21053 10.93516 10.02658 9:23722 B.54780 7.84265 6.51353 27 28 21 28127 19.96.489 18.76411 16,86306 14.89813 13.40618 t1 05108 10.11613 9.30657 8.60162 7.98442 6.53351 28 29 21 84139 20.45355 19 18845 16:98371 15.14107 13.59072 1 1 158141 10:19828 9.36961 8.65011 8.02181 6.55088 29 30 22.39046 20.93029 19.60044 17 29203 15.37245 13.76483 11 25778 10.27365 9.42691 8.69379 8.05518 6,56598 30 31 22.83770 31.30541 20.00043 17 68849 15.59281 13:92909 11.34980 10.34280 9:47901 8.73315 8.08499 6.57911 32 23.46833 21 84918 20.38877 17 87355 15,80268 14.08404 11 43500 10.40624 9.52638 8.76860 8.11159 6:59053 30 23.98856 22.29188 20.78579 18 14765 16:00255 14.23023 11.61389 10:16404 9.56943 8.80054 8.13535 6.60046 33 34 24.49859 22.72379 21:13184 18.41120 16 19290 14.36814 11 68693 10.51784 9.60858 8.82932 8.15656 6.60910 35 24.99862 210146 18 21 48722 18:68461 16.37419 14.49825 11 65457 10.56682 9.64416 8.85624 8.17550 6.61661 35 25.48884 23.65625 21 83295 18.90828 16.54685 14.62099 11:71719 10.61176 9.67651 B.87859 8.19241 6,62314 37 26.90943 23.95732 22.16724 19.14258 16.71129 14.73678 1177518 10:65299 9.70592 8.89963 8.20751 6.62882 38 26.44084 24.34800 22 49246 19.36785 16.86789 14.84602 11 82987 10.69082 9.73265 8.91859 8.22099 6.63375 5889 39 28 DD289 24,73034 22.80822 19.58448 17.01704 14 94907 11 87858 10.72552 9.75697 8.93567 8.23303 6.63805 27.35548 25.10278 23:11477 19.79277 17.15909 15.04630 1 1 92481 10.75736 9.77906 8.96105 8 24378 6.64178

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