On December 31, 2021, the credit quality of S Co deteriorated significantly due to poor market conditions but S Co did not default on the interest payment. The probability of default during the next 12 months to December 31, 2022, was 5% and the probability of default during the remaining lifetime to December 31, 2024, was 25%. Apply discounting at 7%.

What is the interest revenue to be reported for 2021?

Answer rating: 100% (QA)

Step 12 The interest revenue to be reported for 2021 is 1000000 If we assume a 7 interest rate a 5 p... View the full answer