Assume that Northern Petroleum Inc. issued the following bond on January 1: Face amount: $120,000 Contract interest rate: 12% Effective interest rate: 12% Interest is paid semiannually on January 1 and July 1 Term of bond: 6 years

Present Value of Ordinary Annuity of $1 per Period
Periods	3%	3.5%	4%	4.5%	5%	5.5%	6%	6.5%	7%
1	0.97087	0.96618	0.96154	0.95694	0.95238	0.94787	0.94340	0.93897	0.93458
2	1.91347	1.89969	1.88609	1.87267	1.85941	1.84632	1.83339	1.82063	1.80802
3	2.82861	2.80164	2.77509	2.74896	2.72325	2.69793	2.67301	2.64848	2.62432
4	3.71710	3.67308	3.62990	3.58753	3.54595	3.50515	3.46511	3.42580	3.38721
5	4.57971	4.51505	4.45182	4.38998	4.32948	4.27028	4.21236	4.15568	4.10020
6	5.41719	5.32855	5.24214	5.15787	5.07569	4.99553	4.91732	4.84101	4.76654
7	6.23028	6.11454	6.00205	5.89270	5.78637	5.68297	5.58238	5.48452	5.38929
8	7.01969	6.87396	6.73274	6.59589	6.46321	6.33457	6.20979	6.08875	5.97130
9	7.78611	7.60769	7.43533	7.26879	7.10782	6.95220	6.80169	6.65610	6.51523
10	8.53020	8.31661	8.11090	7.91272	7.72173	7.53763	7.36009	7.18883	7.02358
11	9.25262	9.00155	8.76048	8.52892	8.30641	8.09254	7.88687	7.68904	7.49867
12	9.95400	9.66333	9.38507	9.11858	8.86325	8.61852	8.38384	8.15873	7.94269

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

a. $14,400

b. $59,204

c. $86,400

d. $60,364