Marigold Hills Ltd. issued five-year bonds with a face value of $200,000 on January 1. The bonds have a coupon interest rate of 7% and interest is paid semi-annually on June 30 and December 31. The market interest rate was 5% when the bonds were issued at a price of 107.

Determine the interest expense recorded for the six months ending June 30 when the first interest payment is made.

Interest expense

$enter interest expese in dollars