10. On January 1, 2023, Entity D issued $700,000 of 6%, 5 year bonds at 105. The bonds pay interest annually on December 31 and Entity D amortizes any discount or premium using the straight-line method. These bonds were issued at (Please show your work):

a. a discount of $35,000

b. a premium of $35,000.

c. at par for $700,000.

d. none of the above.