Jasmine's Boutique Has 2,000 Bonds Outstanding with a Face Value

Multiple Choice

Jasmine's Boutique has 2,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 9%. The interest is paid semi-annually. What is the amount of the annual interest tax shield if the tax rate is 34%?

A) $58,500
B) $60,100
C) $60,750
D) $61,200
E) $62,250