On January $1,$ Sage Corporation issues $$1,000,000,5-$year, $12\%$ bonds at $95$ with interest payable on January $1.$

The carrying value of the bonds at the end of the second interest period is

Select one:

a$.$ $$970,000.$

b$.$ $$960,000.$

c$.$ $$930,000.$

d$.$ $$950,000.$