Use the Following Information for Questions 47-49

question 38

Multiple Choice

Use the following information for questions 47-49.
On July 2, 2020, Martineau Ltd. issued $ 6,000,000 (par value) , 9%, ten-year convertible bonds at 98. The bonds were dated April 1, 2020 with interest payable quarterly on July 1, October 1, January 1 and April 1. If the bonds had NOT been convertible, they would have sold for 96.1. The bond discount is amortized on a straight-line basis. On April 1, 2021, $ 1,200,000 of these bonds were converted into 500 no par common shares. Accrued interest was paid in cash at the time of conversion.
-What was the effective interest rate on the bonds when they were issued?

• A) 9%
• B) above 9%
• C) below 9%
• D) cannot determine from the information given

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Definitions:

External Fluids

The term may refer to bodily fluids in the external environment or fluids administered externally in medical treatments, but without a specific context, it's hard to provide a precise definition.

Hydrocolloid

A substance that forms a gel with water, used in dressings to promote healing in wounds by maintaining a moist environment.

External Fluids

Liquids that are applied or used outside the body, often for hygiene or medical treatment purposes.

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Surgical procedure aimed at fixing tears of the medial meniscus, a key structure in the knee that helps absorb shock and stabilize the joint.