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From the Following Extract of an Amortisation Schedule Pertaining to a Compound

Question 69

Multiple Choice

From the following extract of an amortisation schedule pertaining to a compound financial instrument,what is the net liability (assuming the debenture has not yet been repaid) ,at the end of Period 10?  Period  Opening  liability  Effective  interest  Coupon rate  Discount  amortisation  Balance of  discount  Net liability 07360559263945192639455558375000005583768021893197822931978255918750000059187621031937896939378969562738500000627385582939441707\begin{array} { | c | r | r | r | r | r | r | } \hline \text { Period } & \begin{array} { c } \text { Opening } \\\text { liability }\end{array} & \begin{array} { c } \text { Effective } \\\text { interest }\end{array} & \text { Coupon rate } & \begin{array} { c } \text { Discount } \\\text { amortisation }\end{array} & \begin{array} { c } \text { Balance of } \\\text { discount }\end{array} & \text { Net liability } \\\hline 0 & & & & & 736055 & 9263945 \\\hline 1 & 9263945 & 555837 & 500000 & 55837 & 680218 & 9319782 \\\hline 2 & 9319782 & 559187 & 500000 & 59187 & 621031 & 9378969 \\\hline 3 & 9378969 & 562738 & 500000 & 62738 & 558293 & 9441707 \\\hline\end{array}


A) Nil
B) 9 500 000
C) 9 905 582
D) 10 000 000

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