PT. Coconut sells $50,000, 4-year, 9% bonds with a rate of 102 on January 1, 2023. Interest is paid annually on January 1. Based on the data above, the sale of bonds carried out by PT. Is coconut included in selling bonds at a discount or at a premium? And how much interest expense will the company recognize on December 31, 2023 if the company uses the straight-line method to amortize the bonds?

a. at a discount ($3.640)

b. at a premium ($4.250)

at a premium ($4.500)

d. at a discount ($4.250)

e. at a premium ($3.640)