Haseena Limited has invested in a debt instrument, details of which are as follows: Face Value of

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Haseena Limited has invested in a debt instrument, details of which are as follows:

Face Value of the instrument =100,000

Premium paid on the investment of the instrument =8000

Transaction cost paid on the investment of the instrument =5800

Coupon rate of the Instrument =12%

Term of the instrument =3 years

Haseena Limited has a policy to classify investment in debt instrument at Fair Value through P/L. IRR of the Instrument =8.848% whereas Market value of the Instrument at the end of year 1 = 107,000 Required Prepare The relevant entries for 1st year.

Related Book For answer-question

Global Investments

ISBN: 978-0321527707

6th edition

Authors: Bruno Solnik, Dennis McLeavey

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Posted Date: Dec 30, 2020 12:53 AM

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Haseena Limited has invested in a debt instrument, details of which are as follows: Face Value of

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Global Investments

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