Prepare amortisation schedule over the life of instrument

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Question - Rover Ltd has opted to raise capital through the issue of 6% debentures with a nominal value of $30 million. The loan notes, which carry an effective interest rate that is 2.5% above coupon, have issue costs of $620,000, have been issued at a 1.8% discount, and will be repayable at the end of the five years at a 9% premium.

Required -

1. Determine the net proceeds to be received from the issue of the loan notes.

2. Prepare the amortisation schedule over the life of the instrument.

Reference no: EM133143045

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