On January 1, 20X3, Kleen Corporation issues $1,000,000 in term bonds with a stated rate of interest of 5% and an effective rate of interest of 7%. The term of the bonds is 5 years. Determine the change made to the bond payable account at the end of 20X3.

a. Credit of $20,000

b. Credit of $15,728

c. No change should be made to bond payable

d. Debit of $20,000

e. Credit of $14,260