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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Followup
Sir if the question says that A company issued its 12% irredeemable loan notes at 95. Current market price is 92. Company pays corporation tax at a rate of 30%. So as the company issues loans at 95, so here 95 doesn’t mean nominal/par value?
No – it means that they issued the loan notes at a discount to nominal value.
