J&G Confectionary needed financing to build a new ice cream plant. On June 30, 2014, J&G issued $700,000 of 10-year bonds with an 8% coupon rate (4% payments are due on December 31^st and June 30^th). The effective interest rate was 10% and the present value of the bond issue was $612, 765.

1. Interest expense for 2015 will be:

a. $30,770

b. $61,276

c. $61,408

d. $61,679

e. None of the above (within $50)