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If one issues 100,000$ debentures at Par and incurs 10,000$ issue costs the opening balance will be 90,000$. If we use EIR method to amortise it, then
What will be the Par value that those debentures could be redeemed at the end of last year?
Closing balance in the amortisation table?
If they are redeemed at par then it will be the $100,000 par value. The $10,000 issue costs are an accounting adjustment and not an adjustment to the par value of the debentures themselves.