On January 2,2017,Lawn Master Construction,Inc.issued $500,000,ten-year bonds for $574,540.The bonds pay interest on June 30 and December 31.The face rate is 8%,and the market rate is 6%.What is the carrying value of the bonds at the end of ten years before the final maturity payment is made?

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The carrying value of the bonds at the end of ten years, just before the final maturity payment is made, will be equal to their face value, which is $500,000. This is because the bond discount or premium is amortized over the life of the bond, bringing the carrying value to the face value at maturity.