On January 1, X1, LTD Company issues 100 bonds with a par value (NP) of $1,000 per bond and a nominal interest (NP) of 10%. These bonds mature on January 1, X11, i.e. in 10 years, and interest is payable once a year, i.e. on December 31. Investors require an effective interest rate (TM) of 12% at the time of issuance.

Investisseur Obliga Inc. purchases 10 bonds from LDT on January 1, X1 and classifies its investment in the Amortized Cost category.

What amount will be charged to the Bond Investment account on January 1, X1? Use discount rates to the 6th decimal place. Use discount tables or formulas. Round up your calculations.

What is the interest income from the investment for FY X1 ?

What is the interest income from the investment for Fiscal Year X5?