Question

Corporate bonds would be included in the

Q: Answer-Corporate bonds would be included in the held-to-maturity (HTM) portfolio that would make these secu...

Securities that are bought by businesses with the intent to hold them until maturity are known as Held-to-Maturity HTM securities. They differ from trading securities or securities open for sale as they are not held until maturity. Companies mainly employ HTM securities to diversify their investment portfolios, insulate from interest rate Volatility, and create a modest, low-risk Capital Gain for a longer period. Debt instruments such as corporate or government Bonds typically make up the investments.

held-to-maturity (HTM) portfolio that would make these securities more attractive for investors.What is the primary purpose of businesses holding Held-to-Maturity (HTM) securities?

A To actively trade and generate short-term profits

B To insulate from interest rate volatility

C To maximize capital gains in the short term

D To diversify their investment portfolios

E None of these

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