XYZ, Inc. issued 4-year bonds with a face value of $500,000. The face rate of interest was 8%, to be paid semiannually, but the market rate of interest was only 7%. If the current book value of the bonds is $515,286.36, what is the interest expense for the next interest period?

Group of answer choices

$20,611.45

$20,000.00

$36,070.04

$18,035.02