Which of the following identifies the correct classification and subsequent measurement basis for this financial instrument?

XY purchased $100,000 of quoted 8% bonds in the current year which it intends to hold until redemption.

Which of the following identifies the correct classification and subsequent measurement basis for this financial instrument?
A . A loans and receivables financial asset subsequently measured at fair value with gains and losses in reserves.
B . A held to maturity financial asset subsequently measured at amortised cost.
C . A loans and receivables financial asset subsequently measured at amortised cost.
D . A held to maturity financial asset subsequently measured at fair value with gains and losses in reserves.

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Answer: B