[12] CoSteen Co. purchased $500,000 of Neets Co. bonds on July 1, Year 1, the date of issuance. Each 30-year bond has a $1,000 face amount and pays annual interest at a rate of 7%. The bond yield is 6%, and CoSteen uses the effective-interest method. The following are the relevant time value of money factors: PV of an ordinary annuity of $1 for 30 periods at 7% 12.409 PV of an ordinary annuity of $1 for 30 periods at 6% 13.765 PV of $1 for 30 periods at 7% .131 PV of $1 for 30 periods at 6% .174 How much did CoSteen pay for the bonds? A. $437,770 B. $499,815 C. $521,315 D. $568,775 [13] On June 30, Year 1, Block Co. acquired $100,000 face amount, 3-year, 9% bonds of Blue Co. for $102,380, including accrued interest. The bonds were issued to yield 10% and mature on December 31, Year 3. Interest is paid annually on December 31. What is the carrying amount of the bonds at December 31, Year 2, if the effective-interest method is used? A. $100,000 B. $99,101 C. $98,274 D. $97,880