Response to the following :
Accounting for the Initial Purchase of Held-to-Maturity Securities
Using the information from problem, make the necessary journal entry to record the purchase of this held-to-maturity security
Problem:
Computing the Value of Held-to-Maturity Securities
On January 1, 2009, the company purchased thirty $1,000 held-to-maturity bonds of another company. The bonds mature in four years from the date of issuance and pay interest at a stated annual rate of 8%, with payments to be made quarterly on March 31, June 30, September 30, and December 31. The market rate on bonds of similar risk is 12%. Compute the present value of this investment.