A company issues 7% bonds with a par value of $140,000 at par on January 1. The market rate on the date of issuance was 6%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bondholder(s) is:

Multiple Choice

$9,800.

$8,400.

$4,900.

$4,200.

$0.