On 1 July 2019, Kruger Ltd privately issues $1 million in six-year debentures, which pay interest each six months at a coupon rate of 6 per cent per annum (3 per cent each 6 months). At the time of issuing the securities, the market requires a rate of return of 4 per cent. Consistent with the requirements of AASB 9, the debentures are accounted for using the effective-interest method.

Required

(a) Determine the fair value of the debentures at the time of issue (which will also be their issue price).

(b) Provide the journal entries at: (i) 1 July 2019 1 mark (ii) 31 December 2019 (iii) 30 June 2020

I dont understand other tutor's answer which has this symbol ^. Please use whole number or type it out for me.

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