harrison 1, page-25

Ref AZZG. This is how I understand and please correct me if I am wrong.
You buy the 2 dollar convertible.
Each year you are once given the change to get the face value back from the company.
Each year they pay you 10 % interest.
At the end of the ride in 2013 you get back face value ie 2 dollars AND you have the right to buy one share for 1.22
So the bond is in fact a unit consisting of the 10% 2 dollar bond plus the warrant to buy 1 share for 1.22 in 2013.
Best regards from a windy morning in Spain.