Allocation of issue cost to financial liability

Hello

I have encountered a question regarding the allocation of issue cost to a convertible bond. The scenario is as below

A company issued 250000 convertible bond on 1 June 2010, which will mature in five years time. It was issued a total fair value of $ 2500000, which is also its par value. Interest were paid annually in arrears at 5.85% per annum. However, a bond without conversion option yield an interest rate of 6.5% in the market. Besides, while issuing the convertible bond, the company had incurred issue cost of $75000. All bonds were converted into two million common shares at $ 1 each.

(i) Prepare the journal entries relating to the finance cost associated with the convertible bond from 2010 until maturity.

(ii) If the effective interest rate is 7%, journalize the finance cost associated with the convertible bond from 2010 until maturity

Thank you