Discount-Mart issued ten thousand $1,000 bonds on January 1, 2016. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.

Payment	Cash	Effective Interest	Decrease in Balance	Outstanding Balance
				8,640,967
1	300,000	345,639	45,639	8,686,606
2	300,000	347,464	47,464	8,734,070
3	300,000	349,363	49,363	8,783,433
4	300,000

What would be the total interest cost of the bonds over their full term?

$1,359,033.

$6,000,000.

$7,359,033.

$4,640,967.