Melanie is looking for a loan. She is willing to pay no more than an effective rate of 9. 955% annually. Which, if any, of the following loans meet Melanie’s criteria? Loan A: 9. 265% nominal rate, compounded weekly Loan B: 9. 442% nominal rate, compounded monthly Loan C: 9. 719% nominal rate, compounded quarterly a. B only b. A and C c. A and B d. None of these fit Melanie’s criteria. Please select the best answer from the choices provided A B C D.

On january 1, 2018, gless textiles issued $12 million of 9%, 10-year convertible bonds at 101. the bonds pay interest on june 30 and december 31. each $1,000 bond is convertible into 40 shares of gless’s no par common stock. bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). century services purchased 10% of the issue as an investment. on january 1, 2018, gless textiles issued $12 million of 9%, 10-year convertible bonds at 101. the bonds pay interest on june 30 and december 31. each $1,000 bond is convertible into 40 shares of gless’s no par common stock. bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). century services purchased 10% of the issue as an investment. 3. on july 1, 2023, when gless’s common stock had a market price of $33 per share, century converted the bonds it held. prepare the journal entries by both gless and century for the conversion of the bonds (book value method).