On 1/2/17, Nast Co issued 8% bonds with a face amount of $1 million that mature on 1/2/23. The bonds were issued to yield 12%, resulting in a discount of $150,000 Nast incorrectly used the straight-line method instead of the effective-interest method to amortize the discount. How is carrying amount of the bonds affected by the error (overstated or understated) at 12/31/17 and a the 1/2/23