Carrying value: held-to-maturity and trading securities

1/1/2009 and 7/1/2009 (MM/DD/YYYY)

bond		FV(*1)	cost(*1)	coupon	yield	Maturity(yrs)
M	held-to-maturity	10	9.2(1/1/2009)	4% annual	5%	-
T	trading security	7	7(7/1/2009)	5% semiannual	-	20

12/31/2009

bond		FV(*1)	cost(*1)	coupon	yield	Maturity(yrs)	CV(*1)(*4)	Fair value(*1)
M	held-to-maturity	10	9.2(1/2/2009)	4% annual	-	-	9.26(*3)	9.6
T	trading security	7	7(7/1/2009)	5% semiannual	4%	19.5	Fair value	7.941591(*2)

(*1)$million

(*2)
39 N
2 I/Y
0.175 PMT
7 FV
PV CPT 7.9416

(*3) Held-to-maturity securities are reported on the balance sheet at amortized cost.
issue price + discount amortization
= issue price + (interest expense - coupon payment)
= 9.2 + (9.2*5%-10*4%)
= 9.2 + (0.46-0.40)

(*4) Carrying value is also reported value on the balance sheet.
= 9.26

At the end of 2009, the investment portfolio of bond M and T is reported at:
9.26 + 7.941591 = 17.201591 million USD = 17,201,591 USD