Friday, March 1, 2019

Securities which could be classified as held-to-maturity are

Securities which could be classified as held-to-maturity are



a. redeemable preferred stock.
b. warrants.
c. municipal bonds.
d. treasury stock.


Answer: municipal bonds.

A requirement for a security to be classified as held-to-maturity is



a. ability to hold the security to maturity.
b. positive intent.
c. the security must be a debt security.
d. All of these are required.


Answer: All of these are required

A correct valuation is



a. available-for-sale at amortized cost.
b. held-to-maturity at amortized cost.
c. held-to-maturity at fair value.
d. None of these answers are correct.


Answer: held-to-maturity at amortized cost.

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