On January 1, 2016, a company issued $400,600 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $414,653 based on a 10% market interest rate. The effective-interest method of amortization is used. Rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30, 2016?

$20,030.

$20,733.

$24,879.

$24,036.