What is the carrying value of the financial asset

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Question - On 1 January 2021, Lundstram Limited acquired debentures as a financial asset at their nominal value of £10 million. The debentures carry fixed coupon interest of 8% which is receivable annually in arrears. An additional premium is payable on redemption of the debentures. Transaction costs associated with the acquisition were £96,000. The effective rate of interest was 9% and the amortised cost method is to be adopted for this asset. What is the carrying value of the financial asset as at 31 December 2021?

Reference no: EM133179100

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