Bertrand Co. purchased a debt instrument which will mature in five years' time. The company intends to hold this debt instrument to maturity solely to collect contractual interest and principal payments. How should this investment be measured in the financial statements?

What is the finance cost to be charged to the statement of profit or loss for the year ended 31 March 20X5 in respect of the loan notes?

On 1 July 20X7, a company purchased a five-year loan note investment with a par value of $7m. The investment was purchased at a 12% discount. The loan note has a coupon rate of 5% and an effective interest rate of 7%. Interest is receivable annually in arrears. The company has the intention of holding the loan note until maturity to receive the contractual cash flows. How much interest income should be recognised in the statement of profit or loss of the company for the year ended 30 June 20X9 (to the nearest $000)?