The Hammer Corporation shows the following balance sheet presentation for the carrying value of bonds payable Bonds payable $1,000,000 Less: Discount on bonds payable (95.000) $ 905,000 Which statement below is correct? The $905,000 represents the amount that bondholders will be paid back when the bonds mature, The $95,000 represents the amount that was paid to bondholders when the bonds were issued. The $95,000 is primarily related to the bond being a higher risk of default. The $95,000 eventually will be amortized down to zero at the maturity date of the bonds