On 1 July 2021, Slater Ltd issued four-year bonds with a total face value of $100 000 and a coupon interest rate of 10 per cent per annum, payable annually in arrears. The market interest rate for Slaters bonds was 12 per cent and so the company had to discount the issue price to its fair value. Required: Calculate the fair value of the bonds. Prepare a schedule of amortised cost using effective interest rate method for the life of the bonds. Prepare the journal entries for the initial and subsequent measurement of the bonds for Slater Ltd for the year ended 30 June 2022. Fair Value of Bonds Year