tulip co

Tulip Co is a large company with an equity beta of 1.05. The company plans to expand existing business by acquiring a new factory at a cost of $20m. The finance for the expansion will be raised from an issue of 3% loan notes, issued at nominal value of $100 per loan note. These loan notes will be redeemable after five years at nominal value or convertible at that time into ordinary shares in Tulip Co with a value expected to be $115 per loan note sir mv of loan note is pv of future cashflows right? but in this tulip question from kaplan when asked :- Using estimates of 5% and 6%, what is the cost of debt of the convertible loan notes? they have used nv 100 as mv in calculation of irr (irr finding cashflow table in year 0) why did they use nv ?instead they should have found mv by discounting all its cashflows ryt?