MK Limited has invested in a debt instrument, details of which are as follows: Face Value=10,000 Premium

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

Face Value=10,000

Premium paid on the investment of the instrument =800

Transaction cost paid on the investment of the instrument =200

Coupon rate of the Instrument =12%

Term of the instrument = 4 years

MK Limited has a policy to classify Investment in debt instruments at Amortized Cost. IRR of the debt Instrument is 8.9188%

Required Prepare the relevant entries for the whole tenure.

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 12:52 AM

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MK Limited has invested in a debt instrument, details of which are as follows: Face Value=10,000 Premium

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Investment in the debt instrument Debt amortized cost ... View the full answer

Global Investments

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