Nola invests in a debt of R16 Million on 01/06/x1 with a 2% DISCOUNT. The coupon rate of the debt is 6% per year, payable at 31 May. The debt is repayable on the 31/05/x5 with a premium of R2 million. The effective interest rate on the debt is 15 625 and is paid at the end of the financial year.

what will be the balance of Nola's investment be in its statement of financial position at 31/05 x27

Select one:

a. R17 020 000

b. R17 540 000

c. R17 170 000

d. 17 390 000