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Is issue cost for subsidised loan never calculated because it is not a loan that the company is arranging, but one that is being offered to it?
There cannot be issue costs because nothing is being issued!
There could possibly be costs of arranging the loan (which would be treated in the same way as issue costs) but this is not very likely.
If there are costs of arranging the loan then the question would have to tell you (just as they have to tell you of any issue costs if debt is being issued). If the question doesn’t mention any costs then there are not any costs.
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