If the market rate changes after a public company purchases bonds to trade, the bonds carrying amount will not change.

Name: If the market rate changes after a public company purchases bonds to trade, the bonds carrying amount will not change.
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Question

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The carrying amount of bonds that a public company intends to trade (trading securities) will change with market rate fluctuations because they are reported at fair value, which reflects current market conditions.

If the Market Rate Changes After a Public Company Purchases