On January 1, 2018, MMC Company purchased a 5-year bond issued by AEC Inc. with face value of RMB 60 million and the coupon rate of 9% per annum payable at the end of each year.The purchase cost was RMB 70.39 million in cash.The maturity date of the bond is December 31, 2022.MMC Company determined that the objective of the bond investment was not only collecting contractual cash flows, but also selling in the market to earn profit from price appreciation.The market interest rate at the purchase of the bond was 5% per annum.The fair values of the bond are given as follows:

RMB 70 million at the end of 2018

RMB 67.5 million at the end of 2019

On January 2, 2020, MMC Company sold the bond investment and received cash of RMB 69 million.MMC Company did notelect the "Fair Value Option" to measure the bond investment.

Required:

1.1)What category of financial assets should MMC Company classify this bond investment and why?

1.2)Determine the effects of the bond investment on MMC Company's income statement until the disposal of the bond investment.Ignore taxes and round numbers to the nearest two decimal places (in millions).