These securities value is adjusted each year based on market value. Since the interest rate received is fixed at the date of purchase, the investor may experience the risk that market interest rates will increase. Held-to-maturity securities are one of the leading categories that corporations use to classify their investments in debt and equity securities. The year U. The discount on bonds recognized at the acquisition of bonds will expire over the year life of the bonds. The specific calculations that are used to determine the price one would pay for a particular bond are revealed in investments held to maturity subsequent chapter. Be able to account for investments held to maturity full life cycle of click to see more bond investment, including situations involving premiums and discounts. Key Terms acquisition : The thing acquired or gained; a gain. One of the major categories of classification of investments held to maturity by a corporation in debt or equity securities is held to maturity securities. CC licensed content, Shared previously. One of the perfect examples of Held to maturity securities is bonds. Investments held to maturity Investment in Bonds account at the purchase price plus brokerage fees and other incidental acquisition costs is established at the time of purchase. Your email address will not be published. This may seem like a bargain, but consider that the investor is likely getting lower annual interest receipts than is available on other bonds. Today, Ken continues to use those finely tuned skills to educate students as a professional writer and teacher. Popular Courses. Lifetime Access.