22. VWX Corporation issues 10-year bonds on January 1, 2023. The bonds have a face

value of $100,000, a contractual interest rate of 15% and pay interest semi-annually on

January 1^st and July 1^st. The market interest rate on the date of issue was 12%.

On July 1^st, 2023, how much bond interest expense would VWX record ( round to

the nearest dollar )?

A. $14,065

B. $7,500

C. $8,790

D. $7,032

E. $6,000