Use the information provided for Tyson Construction Inc to answer the following questions using the effective interest method.

On January 2 2012 Tyson Construction Inc issued $1,000,000 10year bonds for $1,135,915. The bonds pay interest on June 30 and December 31. The stated rate is 10 and the market rate is 8%. 

Refer to the information provided for Tyson Construction Inc The interest expense on the bonds at June 30, 2012 is:

a. $45,436.60

b. $57,135.75.

c. $50,000.00.

d. $90,873.20.