Use the Following Information to Answer Questions Bellow

Multiple Choice

Use the following information to answer questions bellow.
A company obtains a $1,000,000 variable rate loan on January 1, 2021, at a 2.1% interest rate. The loan is renewable every 3 months, and the interest rate is reset at each renewal. The company hedges against rising interest rates by taking a short futures position in $1,000,000 of 3-month Treasury bills at 99. There is no margin deposit, and the hedge qualifies as a fair value hedge of a firm liability commitment. At the end of 3 months, the Treasury bills sell for 98.2 and the loan renews at 2.9%. The company closes the futures contract and renews the loan. All income effects of the loan and the futures are reported in interest expense.
-At what amount will interest expense be reported for the new loan?

A) $ 7,250
B) $ 9,250
C) $29,000
D) $ 5,250