Final answer:
The change in market value is NOT typically made for an investment classified as a held-to-maturity security. They are recorded at amortized cost and are intended to be held until maturity, so transactions like the initial purchase, receipt of interest payments, and reporting of net profit or loss due to interest income are typical.
Step-by-step explanation:
In reviewing transactions for an investment classified as a held-to-maturity security, the change in market value is NOT typically made. Held-to-maturity securities are debt instruments that a company has the intent and ability to hold until they mature.
Unlike trading or available-for-sale securities, they are not affected by temporary market fluctuations, as they are recorded at amortized cost. As such, the initial purchase, the receipt of interest payments, and the reporting of net profit or loss (due to interest income or impairment, for example) are applicable transactions for held-to-maturity securities.
Regarding the receipt of interest payments, this is a typical transaction related to interest income recognized periodically, based on the effective interest rate method. The initial purchase is the actual transaction in which the security is bought at a specific price. The net profit or loss relates to the interest income recognized in the income statement over the period the security is held, not changes in market value.