on july 1 of year 1, west company purchased for cash, 8, $10,000 bonds of north corporation to yield 10%. the bonds pay 9% interest, payable on a semiannual basis each july 1 and january 1, and mature in three years on july 1. the bonds are classified as held-to-maturity securities. west company's annual reporting period ends december 31. assume the effective interest method of amortization of any discount or premium.