Please provide the explanation and solution to the following problem:

10. On January 1, 2013, Maddox Company purchased $100,000 of ten-year, 10% bonds of Millwood Company for $106,300. Interest was payable annually. The market rate on the investment was 9%. What was the carrying value of Maddox's Investment in Held-to-Maturity Bonds account (rounded to the nearest dollar, if necessary) at December 31, 2014? a. b. c. d. $106,733 $106,300 $105,867 $105,395