Sampras Ltd issued $20 million of convertible notes on 1 July 2020. The notes have a life of 6 yearsand a face value of $20 each. Annual interest of 5% is payable at the end of each year. The noteswere issued at their face value and each note can be converted into one ordinary share in SamprasLtd at any time over their lives. Organisations with a similar risk profile to Sampras Ltd have issueddebt with similar terms but without the option to convert at the rate of 7% per annum.Requireda) Identify the present value of the notes and calculate the equity component of the convertiblenotes;b) Provide the appropriate accounting entries to record i) the issue of the convertible notes; ii)the first payment of interest; iii) the conversion of convertible notes into shares on 30 June2021.