Giraffe Ltd has a financial year end of 31 December. On 1 July 2011, Giraffe issued 5-year, 3% per annum, convertible bonds with face value of $200,000 at par. If issued on the same date, similar bonds without the convertible feature would have been sold for $174,409 at the prevailing market interest rate of 6% per annum. The interest payment is to be made semiannually on 30 June and 31 December. Since issuance, no conversion has occurred and by the end of 2012, the conversion feature was such that each $5 bond could be exchanged for 1.2 ordinary shares. For its financial year ending 31 December 2011, Giraffe Ltd reported a basic EPS of $1.80. After taking into consideration of all potentially dilutive securities, Giraffe Ltd also reported a diluted EPS of $1.62
