Blue Corp.'s December 31, 1991, balance sheet contained the following items in the long-term liabilities section:

• 9 3/4% registered debentures, callable in 2002, due in 2007 - 700,000
• 9 1/2% collateral trust bonds, convertible in common stock beginning in 2000, due in 2010 - 600,000
• 10% subordinated debentures (30,000 maturing annually beginning in 1997) - 300,000

What is the total amount of Blue's term bonds? show the solution and explain.