On thec1 January 2019, High End ltd co. raised finance issue of a three years 2% debentures with the nominal value of $50,000. The debenture was issued at a discount of 5% and is redeemed at a premium. The effective interest rate is 8%. The issue cost was $2,000

You are required to illustrate how the above financial instrument should be accounted (including initial recognition) for High End ltd for the year ending 31 December 2021band calculate the premium at which the debenture will be redeemed. (11marks)