Companies determine the cost of held-to-maturity debt securities as the present value of the future cash flows, discounted at the market rate of interest.

Name: Companies determine the cost of held-to-maturity debt securities as the present value of the future cash flows, discounted at the market rate of interest.
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Held-to-maturity debt securities are recorded at amortized cost, which is the present value of future cash flows discounted at the market rate of interest at the time of purchase.

Companies Determine the Cost of Held-To-Maturity Debt Securities as the Present