On January 1, 2019, the Polka Dot Company Acquired a $20

On January 1, 2019, the Polka Dot Company acquired a $20 million face value bond that has an 11% coupon rate (paying interest annually on December 31). The bond matures on December 31, 2024. On January 1, 2019 the market yield for bonds of equivalent risk and maturity was 9%.
Required:
a. How much did Polka Dot pay for this bond on January 1, 2019?
b. On December 31, 2019, the market yield for bonds of equivalent risk and maturity is 10%. What would be the market value of this bond on December 31, 2019 immediately after the coupon payment?
c. On December 31, 2020, the market yield for bonds of equivalent risk and maturity is 11%. What would be the market value of this bond on December 31, 2020 immediately after the coupon payment?
d. Assume each of three scenarios: the bond is classified as (i)amortized cost, (ii)at fair value through other comprehensive income, or (iii)at fair value through profit or loss:
•How much would the balance sheet value of this bond be on December 31, 2019 and December 31, 2020?
•How much income would be reported in 2019 and 2020 for this bond?
•How much would other comprehensive income (OCI)and accumulated OCI be for fiscal years 2019 and 2020?