Answer:
Explanation:
as per the IFRS-9 effective rate is charged on the carrying value the investment. assuming that the interest and bond value will b paid on redemption date. we will prepare the the amortization schedule as follows
Semi annully Schedule
Year Amount Interest 8.625%/2 Closing Amount
6months 1,000.00 43.12 1,043.12
6months 1,043.12 44.98 1,088.10
6months 1,088.10 46.92 1,135.03
6months 1,135.03 48.95 1,183.97
6months 1,183.97 51.06 1,235.03
6months 1,235.03 53.26 1,288.28
6months 1,288.28 55.55 1,343.84
6months 1,343.84 57.95 1,401.79
6months 1,401.79 60.45 1,462.24
6months 1,462.24 63.06 1,525.29
6months 1,525.29 65.77 1,591.07
6months 1,591.07 68.61 1,659.68
6months 1,659.68 71.57 1,731.25
6months 1,731.25 74.66 1,805.90
6months 1,805.90 77.88 1,883.78
6months 1,883.78 81.23 1,965.01
what if the interest is paid on after every six months then calculation of interest will b as follows
Year Amount Interest Repay Closing Amount
8.625%/2
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
6months 1,000.00 43.12 43.12 1,000.00
