Guzzler Enterprise Limited recently issued a deep discount loan note which has an issue cost of $10 million. The nominal value of the loan note is $100 million on January 1, 2017, which also has a nominal rate of 4% per annum. However, the effective rate of interest on similar loan notes stood at three times the currently nominal rate of interest. The current 90-day Treasury bill rate is 3.25%. The loan note pays interest on an annual basis in arrears, however, management wants to ascertain the carrying value of the financial instrument at the end of the second year. The loan was issue at a discount of 20% at its inception. It is expected that the instrument will mature at the end of five years. It is anticipated that the note will be held to investors to its maturity with the purpose of solely collecting principal and interests. Required: a. Determine the carrying value of the loan on the books of the issuer as at December 31, 2019 [ 5 marks ] b. Determine the total interest expense over the life of the loan [ 5 marks ] c. In accordance with IFRS 9, how can the investment be carried on the books of the holder subsequent to its initial recognition?