Amortization of bond discount decreases invest-true or false

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true or false

Question 1: Amortization of bond discount decreases investment in debt securities account.

Question 2: If debt securities are purchased between interest payment dates, the buyer shall pay the accrued interest.

Question 3: The amortized cost of the investment is always equal to the present value of future cash flows discounted using the effective interest rate at year end for the remaining periods.

Question 4: When bonds are sold, total cash received is always equal to the sum of selling price, accrued interest and transaction cost.

Question 5: Held to collect investments shall be reported at its amortized cost at year end.

Reference no: EM133001424

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