Comprehensive income as a result of the investment

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Extra credit. Available for sale securities are reported at fair value. This means that changes in fair value are reported in other comprehensive income. Can you provide a scenario where the company purchased a bond classified as AFS and the market value of the bond has remained constant throughout, yet the company will need to report other comprehensive income as a result of the investment? Hint: Refer to the two-word phrase that describes the accounting method for HTM.

Reference no: EM131361204

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