Kapoor Bhd issued 4 percent debentures with a nominal value of RM40,000,000 on 1 January x1. The debentures were issued at a discount of 2.5 percent and the issue cost incurred was RM1,000,000. The loan notes will be repayable at a premium of 10.25 percent at the end of the fifth year. The effective interest rate is 7 percent. Interests are to be paid on 31 December. Assume: The company has classified the debentures at amortised cost. D. The company has classified the debentures at fair value through profit or loss. Market value of the debentures in a. years x1 to x5 is as follows:

Kapoor Bhd issued 4 percent debentures with a nominal value of RM40,000,000 on 1 January x1. The debentures were issued at a discount of 2.5 percent and the issue cost incurred was RM1,000,000. The loan notes will be repayable at a premium of 10.25 percent at the end of the fifth year. The effective interest rate is 7 percent. Interests are to be paid on 31 December. Assume: The company has classified the debentures at amortised cost. D. The company has classified the debentures at fair value through profit or loss. Market value of the debentures in a. years x1 to x5 is as follows:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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