Question: 3) A 5% loan note was issued on 1 April 20X0 at its face value of $20 million. Direct costs of the issue were $500,000.

3) A 5% loan note was issued on 1 April 20X0 at its face value of $20 million. Direct costs of the issue were $500,000. The loan note will be redeemed on 31 March 20X3 at a substantial premium. The effective interest rate applicable is 10% per annum. At what amount will the loan note appear in the statement of financial position as at 31 March 20X2

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