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Assume that blossom corp. makes a loan to Marie co . And receives in exchange a $ 1 0 , 2 0 0 , three
Assume that blossom corp. makes a loan to Marie co And receives in exchange a $ three year note bearing interest at annually. The market rate of interest for a note of similar risk is Over the term of the note, blossom corp will receive $ interest each year a rate of abd a maturity will get $ more than the cash originally loaned. This $the discount effictively increases the return on the investment from to It is amortized each period and the ammount of interest income that is recognized is greater than the $ received each year.
Prepare a threeyear discount amortization and interest income schedule assuming Blossom follows IFRS and uses the effective interest method. For calculation purposes, use decimal places as displayed in the factor table provided and final answer to decimal places, eg
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