Question: When market rates of interest rise after a fixed rate security is
When market rates of interest rise after a fixed-rate security is purchased, the value of the now-below-market, fixed-interest payments declines, so the market value of the investment falls. If that drop in fair value is viewed as giving rise to another-than-temporary impairment, how would it be reflected in the investment account for a security classified as held-to-maturity?
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