Boréal SA acquired bonds on 1 January N for 800,000, an amount equal to their fair value, and measures them at amortised cost. The annual effective interest rate given by the case is 5 %; a coupon of 30,000 is received every 31 December. The three-year bonds are redeemed on 31 December N+2 for 831,525, in addition to the last coupon. Calculate the interest income for year N+1 and the carrying amount at 31 December N+1.
- Acquisition price
- 800,000
- Effective interest rate
- 5 %
- Annual coupon received
- 30,000
- Amount repaid at maturity (excluding the last coupon)
- 831,525