Kaselitz Corp. issued a $100,000, 8%, 5-year bond on 1/1/21. Interest is paid each June 30 and December 31. The bond sold for $96,044 to yield 9%. The effective interest method is used.

Cash interest paid to the bondholders in 2021 is:

Select one:

a.

$7,350

b.

$8,000

c.

$7,683

d.

$9,000

e.

$8,644