Question 5 Fortune Ltd invests in bonds. Sometimes, it trades these bonds by flipping them quickly for profit. Others are held for the long term. Details of two particular bonds purchased on 1 July 2020 are as follows: Nominal value of bond Coupon interest rate Purchase price of bond Transaction costs Effective yield to maturity Bond A $45 million 4% $38.46 million $0.04 million 6.75% Bond B $30 million 5% $28 million $0.03 million 7.8% Bond A was purchased with a view to holding it for the long term, drawing the interest and principal as it becomes payable. Bond B was bought at a deep discount, and the aim is to wait until the market value increases, and then sell it on at a profit. At 30 June 2021, Bond B had a fair value of $27.5 million. In both cases, the interest is payable on 30 June each year, and has been paid as promised. Required: In the case of each bond above, outline the accounting treatment, including journal entries, required by HKFRS 9 for year ended 30 June 2021. Show all workings clearly. (11 marks)