On 1 January 20X0 an entity obtains a 5 year loan for euro 300.000, incurring transaction costs of Euro 3300, thus the net amount obtained is 296.700 after costs. Terms and condition of the agreement provide the following- rate: 3% paid at the end of each year- reimbursement plan: interest at 01/10 of each year, capital at the end note - 3% of 300 000= 9000- initial capital = 296.700- end capital = 300.000- effective interest rate = 3,242% - the rate that discounts the expected cash flows on the bond to the initial carrying amount make JE

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