Your firm has a $300,000 bond issue outstanding. These bonds have a 7% coupon, pay interest semiannually, and have a current market price equal to 103% of face value. What is the amount of the annual interest tax shield given a tax rate of 35%?

a.

$7,350

b.

$18,025

c.

$6,125

d.

$6,309

e.

$17,500