On January 1, 2016, a Company Issued $400,000 of 10-Year

On January 1, 2016, a company issued $400,000 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $413,153 based on a 10% market interest rate. The effective-interest method of amortization is used. The book value of the bond liability on December 31, 2016 is closest to:

A) $400,000.
B) $413,320.
C) $406,302.
D) $407,432.