Held-to-maturity securitiesA) are reported at fair value on the balance sheet dateB) include both stocks and bondsC) are primarily purchased to earn interest revenueD) all are correct

Question

Geraldina Zapata · Accepted Answer

Final Answer : C, Explanation :  Held-to-maturity securities are debt securities that are held by an investor with the intention of holding them until maturity. They are reported on the balance sheet at amortized cost, not at fair value. These securities are primarily purchased to earn interest revenue, rather than for trading or speculative purposes. Stocks are not considered held-to-maturity securities, only bonds and other debt securities. Therefore, only choice C is correct.

Held-to-maturity securities

A) are reported at fair value on the balance sheet date
B) include both stocks and bonds
C) are primarily purchased to earn interest revenue
D) all are correct

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Learning Objectives

Learning Objectives

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