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b) on 1 July 2014 Jango Limited issued S1 million in six year debentures that pay interest every six months at a coupon rate of
b) on 1 July 2014 Jango Limited issued S1 million in six year debentures that pay interest every six months at a coupon rate of 2%. At the time of issuing the securities the market required a rate of return of 4%. Required: L Determine the issue price. (2 marks) i Complete the amortisation schedule in the yellow answer booklet for the six year (5 marks) period the debentures were issued for. ii Provide the journal entries for the first two years of the debenture's life (i.e. years (5 marks) ending 30 June 2015-2016) TOTAL MARKS: 22]
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