Investments Flashcards
1
Q
Premature sale of held-to-maturity securities are considered at maturity if either
A
(1) the sale occurs so close to maturity that interest rate risk is virtually eliminated, or
(2) the sale occurs after at least 85% of the principal has been collected.
2
Q
when you hold bond you are..
A
investor
3
Q
when you issue bond you are..
A
investee
4
Q
is the fair value method required for accounting for an investment
A
no. you may elect to use it that would otherwise would have been accounted for using amortized cost or the equity method
