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A debt instrument was purchased on 1 January 2021 at its fair value. It has a face value (redemption value in 5 years' time) of

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A debt instrument was purchased on 1 January 2021 at its fair value. It has a face value (redemption value in 5 years' time) of 550,000. It pays interest in arrears for the next 5 years at 6% per year. The effective discount rate is 8% per year. Entity 5 intends to collect the debt interest and principal as the primary objective. Show how the debt instrument in (i) should be accounted for in Entity 5's financial statements. Step by Step workings please

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