On January 2, current year, Kalahari Limited issued $1,000,000, 10-year bonds for $1,150,000. The bonds pay interest on June 30 and December 31. The stated rate is 10% and the market rate is 8%. The company plans to use the effective interest method of amortizing bond discounts and premiums. What is the carrying value of the bonds at the end of ten years before the final maturity payment is made? a. $850,000 b. $1,000,000 c. $1,200,000 d. $1,150,000