Nord SA granted a loan of 1,000,000 on 1 January, measured at amortised cost; its initial fair value equals the amount lent. The annual effective interest rate given by the case is 6 %. The annual coupon of 50,000 is received on 31 December. The two-year loan is repaid on 31 December of the second year for 1,020,600, in addition to the last coupon. Calculate the interest income for the first year and the carrying amount at 31 December.
- Loan amount
- 1,000,000
- Effective interest rate
- 6 %
- Annual coupon received
- 50,000
- Amount repaid at maturity (excluding the last coupon)
- 1,020,600