Calculate the amortized cost over the five years

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Question 1. Explain how financial assets and liabilities are classified and measured

Question 2. On 1 January x3, Roy issues a debt instrument for a price of RM25 million. The principal amount is RM25 million and is repayable on 31 December x7. The rate of interest specified in the debt agreement as a percentage of the principal amount is as follows: 6 % in x3, 8% in x4, 10% in x5, 12% in x8 and 16.4% in x7

The interest rate that exactly discounts the stream of future cash payments through maturity is 10%

Required:

Calculate the amortized cost over the five years

Reference no: EM132626118

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