When bonds are sold by a company, they are recorded on the issuing firm’s financial statements at their selling price. This price reflects the yield rate on the date of sale for equivalent risk-rated debt instruments. Although the market yield rate for a given bond may fluctuate widely in the debt market, the changing market rate is ignored for accounting purposes; and instead, the debt instrument remains on the financial statements of the issuing company at the yield rate prevailing at the time of sale. Discuss the implications of this accounting treatment. Do you believe that bond values should be periodically revised to reflect a changing interest-rate environment? Why or why not?