A company issues $5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2015. Interest is paid on June 30 and December 31. The proceeds from the bonds are $4,901,036. Using effective-interest amortization, how much interest expense will be recognized in 2015?

Select one:

a. $390,000

b. $195,000

c. $392,124

d. $392,083