What type of investment is represented by Hendricks Corporation's purchase of bonds at par?

Hendricks Corporation's purchase of bonds at par is best classified as a trading investment. Trading investments are typically acquired with the intent to sell them in the short term to profit from price changes. Since the bonds were purchased at par, it suggests that the intention may be to actively manage and quickly sell these bonds based on market conditions, aligning with the trading category.

The classification of an investment as held to maturity typically applies to securities purchased with the intent to hold them until maturity, regardless of market fluctuations, which is not the case here. Available-for-sale investments are categorized for those not strictly held for short-term trading or intended to be held until maturity; instead, they may be sold based on market conditions but are generally held longer than trading investments.

Therefore, the nature of the bonds being purchased at par suggests a focus on short-term gains, making trading the most suitable classification for this investment.