Sketel Company issued $100,000 six-year bonds on January 1, 2019. The coupon rate for these bonds is 4% and the market rate on the date of issuance was 3%. Assuming Sketel pays interest on the bonds annually, what is the total interest expense over the life of the bonds?

Select one:

a. $24,000.00

b. $76,000.00

c. $18,582.81

d. $21,668.77