Use the following information to answer the next two items: On December 31, 2017, Herod Company issued P5,000,000 face amount, 5-year bonds at 109. Each P1,000 bond was issued with 50 detachable share warrants, each of which entitled the bondholder to purchase one ordinary share of P5 par value at P25. Immediately after issuance, the market value of each warrant was P5. The stated interest rate on the bonds is 11% payable annually every December 31. However, the prevailing market rate of interest for similar bonds without warrants is 12%. The PV of 1 at 12% for 5 periods is 0.57 and the PV of an OA of 1 at 12% for 5 periods is 3.60. 14. What is the equity component arising from the issuance of bonds? A. O B. 450,000 C. 500,000 D. 620,000 15. What is the share premium if all of the warrants are exercised? A. 1,250,000 B. 2,500,000 C. 5,000,000 D. 5,620,000