Respected Teacher,
If I recognized financial asset thorough amortized cost. let say I invested in bond have value of $1,000 , 5 years maturity and coupon rate is 5%. after converting the interest and principle amount into present value then today its value is $910. Transaction cost is $30. at what value I shall recognize the asset in SOFP?
If I recognize it on 940 then what are the subsequent calculations? Do I have to use effective rate on $940?
Thank you so much.
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