Which item(s) should affect net income if bond investments are classified held-to-maturity?

Select one:

a. Unrealized Loss, but not Realized Gains

b. Realized Gains, but not Unrealized Loss

c. Both Unrealized Loss and Realized Gains

d. Neither Unrealized Loss nor Realized Gains

An investor purchased a bond as a long-term investment on January 1. Annual interest was received on December 31. The investor's interest income recorded would equal cash received each year if the bond were purchased at

Select one:

a. Face Value

b. A discount, and the straight-line method was used

c. A discount, and the effective method was used

d. A premium, and the effective method was used

e. A premium, and the straight-line method was used