INV ESTMENTS Debt securities are instruments representing a creditor relationship with an enterprise. Debt securities include U.S. government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. Debt securities are grouped into the following 3 categories: Held-to-maturity: debt securities that the firm has the positive intent and ability to hold to maturity. Trading: debt securities bought and held primarily for sale in the near future to generate income on short-term price differences. Available-for-sale: debt securities not classified as either of the above. Held-to-maturity debt securities are accounted for at amortized cost, not fair value. Available-for-sale securities are reported at fair value. Unrealized gains and losses related to changes in fair value for these securities are reported as part of other comprehensive income as a component of stockholders’ equity. When the securities are sold, the realized
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