Nuage SA issued convertible bonds on 1 January; the liability component was measured at 2,350,000. The effective interest rate of the liability component is 8 % per year (case data) and the coupon paid on 31 December is 100,000. Calculate the interest charge for the year and the carrying amount of the liability component at 31 December.
- Liability component at issue
- 2,350,000
- Annual effective interest rate
- 8 %
- Coupon paid on 31 December
- 100,000