I am not sure what the answer is. please show steps

A company issued $260,000 5-year, 6.50% bonds and received $262,961 in cash. The market rate of interest when the bonds were issued was 6.00%. What is the amount of interest expense to be recorded for the first annual interest period if the company uses simplified effective interest amortization? Multiple Choice $15,777.66 $15,600.00 O $17,092.47 O O $16,900.00