Accounting · Financial Instruments
Bertrand Co. issued $10 million convertible loan notes on 1 October 20X0 carrying a nominal interest rate of 5% per annum. A similar loan note without a conversion option carries an interest rate of 8%. The initial liability component is $9,190,000. What is the carrying amount that should be shown under non-current liabilities at 30 September 20X1 after accounting for the effective finance cost and coupon paid?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Nil
- 2$9,690,000
- 3$9,925,000
- 4$9,425,200✓
Correct answer
$9,425,200
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