Convertible Bond 8% 14%

Period Details CF DF PV DF PV
0 MV -85 1 -85 1 -85
1-5 Interest Payments 5.6 3.99271003708 22.3591762076 3.4330809689 19.2252534256
5 CV 112.20413846 0.68058319703 76.3642512708 0.5193686644 58.2753135255
NPV 13.7234274784 -7.49943304886

RV 105
CV 112.20413846

IRR 11.880%

Interest Amount
Book Values Market Values Cost of Capital Book Values Market Values
Loan Note 500000 500000 9% 45000 45000
Preference Shares 187500 250000 12% 22500 30000
Ordinary Shares 1000000 1250000 18% 180000 225000
Total 1687500 2000000 0.39 247500 300000
14.7% 15.0%
0
Financial
1. Normal
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