The amortized cost method determines the carrying value of held-to-maturity debt investments.

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The amortized cost method is a method for determining the carrying value of held-to-maturity debt investments. This method calculates the cost of the investment based on the original purchase price plus any adjustments made for accrued interest or amortization of discounts or premiums over the life of the investment. The result is a more accurate reflection of the true cost of the investment over time than simply using the original purchase price as the carrying value.

The Amortized Cost Method Determines the Carrying Value of Held-To-Maturity