Please show work and formula. I am studying for a test. Thank you I will upvote.

12) Your firm has a $250,000 of debt outstanding that is selling at par. These bonds have a coupon rate of 7 percent. What is the amount of the annual interest tax shield given a tax rate of 35 percent? A) $17,500 B) $9,500 C) $6,309 D) $18,025 E) $6,125