a-company-holds-a-bond-as-a-held-to-maturity-security-the-bond-has-a-face-value-

Question

A company holds a bond as a held to maturity security. The bond has a face value of $5,000, a coupon rate of 4%, and was purchased at a premium for $5,200. How is the bond reported on the balance sheet over time?

Accepted Answer

At amortized cost, gradually decreasing to $5,000 by maturity.

Answer

At cost, remaining at $5,200 until maturity.

Answer

At face value, immediately reported as $5,000.

Answer

At fair value, adjusted annually.

A company holds a bond as a held to maturity security. The bond has a face value of \$5,000, a coupon rate of 4%, and was purchased at a premium for \$5,200. How is the bond reported on the balance sheet over time?