The amortized cost of a held-to-maturity investment is the:

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The amortized cost of a held-to-maturity investment is the purchase price plus any unamortized premium. This is because held-to-maturity investments are accounted for at cost and any premiums paid over par value are amortized over the life of the investment. Option A is incorrect because issue cost is not included in the amortized cost. Option B is incorrect because held-to-maturity investments are not adjusted for changes in market value. Option D is incorrect because annual bond expense is not subtracted from the purchase price to calculate the amortized cost.

The Amortized Cost of a Held-To-Maturity Investment Is The