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Questions on Financial instrument

Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Questions on Financial instrument

  • This topic has 0 replies, 1 voice, and was last updated 8 years ago by lwhlwh.
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  • August 31, 2017 at 10:06 am #404305
    lwhlwh
    Member
    • Topics: 12
    • Replies: 1
    • ☆

    Hello, recently i have encountered problems in doing a question relating to financial instruments, may i seek help from anyone?

    Question 1 :

    On 1 January 2006, an entity issued a debt instrument with coupon rate of 3.5% at par value of $ 10000000. It incurred an issue cost of $200000. The debt instrument is repayable on 31 December 2012 at a premium of $ 5100000. What is the total finance cost associated with the debt instrument

    Thank you in advance

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