On January 1, 2012, Fei Corp. issued a 3-year, 5% coupon, $100,000 face value bond. The bond was priced at an effective interest rate of 8%, yielding proceeds of $92,137. This is the first and only bond that Fei has ever issued.

Feis Statement of Cash Flows for fiscal year 2012 had the following line items:

		2012		2011
Net Income		$11,500		$10,350
Depreciation		$25,478		$23,675
Amortization of Bond Discount		$2,418		$0

What was Feis Interest Expense on the bond during fiscal year 2012?

$2,418

$7,371

$7,418

$8,000

$5,000