Clare Co. issued $6 million of 12% bonds on December 1, Year 1, due on December 1, Year 6, with interest payable each December 1 and June 1. The bonds were sold for $5,194,770 to yield 16%. If the discount were amortized by the effective interest method, Clare's interest expense for the fiscal year ended November 30, Year 2, related to its $6 million bond issue would be?

a) $623,372 b) 720,000 c) 831, 163 d) 835,610 and why?