Debt security holders recognize gain when the principal amount of the securities received is greater than the principal amount given up.

Name: Debt security holders recognize gain when the principal amount of the securities received is greater than the principal amount given up.
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Question

Quizplus · Accepted Answer

This statement is true. Gain is recognized in debt securities when the principal amount received is greater than the principal amount given up. This gain may be realized or unrealized depending on the situation.

Debt Security Holders Recognize Gain When the Principal Amount of the Securities