The following information relates to the debt investments of Wildcat Inc. during a recent year:
1. On February 1, the company purchased Gibbons Corp. 10% bonds with a Face Value of $300,000 at 100 plus accrued interest. Interest is payable on April 1 and October 1.
2. On April 1, semi-annual interest was received on the Gibbons bonds.
3. On June 15, Sampson Inc. 9% bonds were purchased. The $200,000 par-value bonds were purchased at 100 plus accrued interest. Interest dates are June 1 and December 1.
4. On August 31, Gibbons Corp. bonds with a par value of $60,000 purchased on February 1 were sold at 99 plus accrued interest.
5. On October 1, semi-annual interest was received on the remaining Gibbons Corp. bonds.
6. On December 1, semi-annual interest was received on the Sampson Inc. bonds.
7. On December 31, the fair values of the bonds purchased on February 1 and June 15 were 98.5 and 101, respectively. Assume the investments are accounted for under the recognition and measurement requirements of IFRS 9 Financial Instruments.

Instructions:
(a) Prepare all journal entries that you consider necessary, including December 31 year-end entries, assuming these investments are accounted for at FV-NI and interest income is not reported separately from other related investment gains and losses.
(b) Assume instead that Wildcat manages these investments based on their Yield to Maturity. Prepare all journal entries that you consider necessary, including December 31 adjusting entries.
(c) Briefly explain what it means to manage an investment on the basis of yield to maturity, and why the recommended accounting method is reasonable in such a situation.