> Are these held-to-maturity bonds which are using the amortized cost method?
That would only apply if they acquired ownership of the bonds at par originally and there was never any credit impairment over the life of the security.
Just think if you were buying bonds of a company in bankruptcy trading at 7 -- you just couldn't assume par.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.