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Joplin Limited invested 1,000 in a debt instrument (issued at par) on 1 January 2018. The term of the debt is five years and the
- Joplin Limited invested 1,000 in a debt instrument (issued at par) on 1 January 2018. The term of the debt is five years and the coupon rate of interest attached to the instrument is 6%. Upon redemption, Joplin Limited will receive the initial 1,000 investment back plus a bonus premium of 250. The effective rate of interest is 10.1%.
The fair value of the instrument on 31 December 2018 was 1,100.
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Managerial Accounting
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
5th Edition
1264467206, 978-1264467204
