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On 1 January 2021, a company buys 100,000 of 7% loan stock for 95,730. Interest is received on 31 December each year and the stock

On 1 January 2021, a company buys 100,000 of 7% loan stock for 95,730. Interest is received on 31 December each year and the stock will be redeemed at a premium of 10% on 31 December 2024. The loan stock is a financial asset measures at amortized cost according to IFRS 9.

Calculate the amount at which the loan stock should be shown in the statement of financial position at 31 December 2021. If the effective interest rate is 10.5% a year.

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