Assume that Northern Petroleum Inc. issued the following bond on January $1$:

Face amount: $$200,000$

Contract interest rate: $12\%$

Effective interest rate: $12\%$

Interest is paid semiannually on January $1$ and July $1$

Term of bond: $5$ years

Based on this information, what is the present value of the periodic interest to be paid on the bonds?

Refer the present value tables in Exhibit $5$ and Exhibit $7.$

a$.$ $$24,000$

b$.$ $$112,321$

c$.$ $$120,000$

d$.$ $$88,321$