Jeske Company issued $2,000,000 of 9% bonds at a time when the market rate of interest was 10%. If the bonds were issued at a $75,000 discount and interest was paid annually, how much was interest expense for the first full year of the bond issue (utilize the effective-interest amortization technique)?

Select one:

a. $186,750

b. $187,500

c. $192,500

d. $200,000