Held-to-maturity securities a. are reported at fair value. b. include equity securities. c. are not intended to be held until the maturity date. d. include corporate notes and bonds.

Question

Business

Celia

27 September, 06:37

Held-to-maturity securities a. are reported at fair value. b. include equity securities. c. are not intended to be held until the maturity date. d. include corporate notes and bonds.

+1

Answers (1)

Know the Answer?

Cornelius Gross · Answer 1

The correct answer is option D, held-to-maturity securities include corporate notes and bonds.

Explanation:

Held-to-maturity securities are normally debt instruments purchased with aim of keeping them till maturity so as to collect the principal amount invested as well as the related interests, since they are not held for short-term gains, they are not reported at fair values.

Securities held for short-term to be realized in short-term are reported at fair values