Physics homework help

1. 7% convertible debt, 210 bonds each convertible into 43 common shares. The bonds were outstanding for the entire year. The income tax rate is 25%. The bonds were issued at par ($1,190 per bond). No bonds were converted during the year.2. 3% convertible, cumulative $110 preferred shares, 1,100 shares issued and outstanding. Each preferred share is convertible into 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year.QUESTION: A) B) C) When Sunland Corporation issued the 7% convertible debt, the company’s interest rate on straight debt have been (GREATER than or LESS than) 7% ? (pick one)