. Measurement: Bonds Example Company A issues $ 2,000,000 face value bond with a coupon rate of 5% on January 1, 2020 The market rate at the time of issue is 4% The bond matures in 4 years and pays interest semi-annually. What are the proceeds to be received by Company A? At the end of 2020 assume the market rate of interest is now 6% (note this is not due to an increase in credit risk for the company) . Measurement: Bonds . Transaction costs Assuming the same facts in the original example but there are transaction costs of $ 50,000 Prepare the journal entries for the first year using: FV-NI (IFRS) Amortized cost . . Measurement: Bonds Example Company A issues $ 2,000,000 face value bond with a coupon rate of 5% on January 1, 2020 The market rate at the time of issue is 4% The bond matures in 4 years and pays interest semi-annually. What are the proceeds to be received by Company A? At the end of 2020 assume the market rate of interest is now 6% (note this is not due to an increase in credit risk for the company) . Measurement: Bonds . Transaction costs Assuming the same facts in the original example but there are transaction costs of $ 50,000 Prepare the journal entries for the first year using: FV-NI (IFRS) Amortized cost