On 1 January 2024, Koala Ltd issued at par in a private placement \(\$ 42\) million BBB-rated 5 -year fixed rate debt securities with an annual coupon interest rate of \(8 \%\) interest. At 31 December 2024, Koala Ltd still carried a BBB credit rating. Market conditions, including interest rates and credit spreads for a BBB-quality credit rating and liquidity, remain unchanged from the date of issue. However, Koala Ltd's credit spread had deteriorated by 50 basis points because of a change in its risk of non-performance. If the debt securities were issued at 31 December 2024, they would be priced at an interest rate of \(8.5 \%\).

Required Determine the fair value of the debt securities at 31 December 2024 using the present value technique.