# Held to Maturity on B/S?

The table on page 18 of FRA says they are held at amortized cost. I look at problem 13, page 69, and they indicate in the solution that Held to Maturity are recorded at historical cost on B/S!

they’re held at hisorical cost. historical cost is amortized, which makes it the amortized cost. so its two different ways of saying the same thing.

amortised cost = historical - premium + discount

In the example on page 18, the par value of the bonds they purchased was \$275k and they paid \$300k for them. At the end of the year, they recorded the value of these bonds on the B/S as \$297k, which is the “amortized” value of the bonds, since they recorded the bonds initially at \$300k, then at the end of each year, they amortize the premium paid on top of par. That makes sense now, but I don’t think of that as recording them at cost! Cost would be \$300k. This is the first time, I touch FRA since last year, and I could swear this was a piece of cake for me last year…yet now I’m barely able to figure out just the basic concept…that’s not looking good.