I know the answer is 1.3m but please explain the reason why, and the reason why 10 percent subordinated debtures is not included.

1. Blue Corp's December 31, Year 4, balance sheet contained the following items in the long- term liabilities section: 9.75% registered debentures, callable in Year 15, due in Year 20 $700,000 9.50% collateral trust bonds, convertible into common stock beginning in Year 13, due in Year 23 600,000 10% subordinated debentures ($30,000 maturing annually beginning in Year 10) 300,000 What is the total amount of Blue's term bonds? A. $600,000 B. $700,000 C. $1,000,000 D. $1,300,000