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I wanna ask 8% $5m convertible loan note. There is a figure $475k in income statement which is finance cost – unwind discount. But how to compute $475k? many thanks
Redeem at par at year 3 to present value: 5,000,000 x 0.75= 3,750,000
Interest payable of 4 years to present value: 400,000 x 2.49 = 996,000
Total liability is 4,746,000 at present value
10% of 4,746,000 is 475,000
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