Question: On 1 January 2017 Quincy bought 500,000 of 6% loan stock for 490,420. Interest is receivable on 31 December each year and the loan stock

On 1 January 2017 Quincy bought €500,000 of 6% loan stock for €490,420. Interest is receivable on 31 December each year and the loan stock will be redeemed at a 15% premium on 31 December 2021. The effective rate of interest is 9% per annum and Quincy intends to hold the loan stock until it is redeemed.

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