Question: Lesp Industries issues five - year bonds dated January 1 , 2 0 1 5 with a face value of $ 2 , 0

Lesp Industries issues five $-$ year bonds dated January $1, 2015$ with a face value of $ $2, 000, 000$ and $3 %$ coupon rate paid annually on December $31 .$ The market interest rate on bonds of comparable risk and term is $4 % .$ The sales proceeds of the bonds are $ $1, 910, 964 .$

Under the effective interest rate method, the interest expense in $2017$ is closest to:

A $.$ $ $77, 096 .$

B $.$ $ $77, 780 .$

C $.$ $ $77, 807 .$

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