Samuel company purchased a bond which carries a coupon rate of 10%. The bond is a 5 million 3 year bond. The bond was purchased in Jan 1 2019 to yield 12%. The interest is payable annually and the principal is to be repaid on maturity date.

The market interest rate

on Dec 31 2019 is 11.5%.

On dec 21 2020 12.5%.

On dec 21 2021 9%

assuming the bond is accounted

at fair value through profit or loss

Compute the ff:

1. Purchase price of the bond

2. The carrying amount of the investment on Dec 31 2019

3. The interest income on 2019

4. The gain or loss to be presented in profit or loss on Dec 31 2019

5. The carrying amount of the investment on Dec 31 2020.

6. The interest income on 2020

7. The gain or loss to be presented in profit or loss on Dec 31 2020

8. The gain or loss on sale on July 1 2021