Present value technique: debt obligation   LO5 On 1 January 2019, 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 10%. At 31 December 2019, 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 2019, they would be priced at an interest rate of 10.5%. Required Determine the fair value of the debt securities at 31 December 2019 using the present value technique.