> 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.
Thats exactly what I was saying. The bonds pay a semi-annual coupon, thus the Bond price is not amortized to include the interest. When the bond matures the owner will receive the amount they bought it for.