troymo

At purchase:
Par = 275
BV = 300
FV = 350

You have to amortize the premium you paid over par using the effective interest method. This reduces your BV each period so by the time you reach maturity the BV=par. This means that after 1 period the BV = 297 and the FV = 350 resulting an unrealized gain of 53 reported in OCI and sitting in AOCI on the B/S.