The June Bug has a $16,000,000 bond issue outstanding. These bonds have a 7 percent coupon, pay interest semi annually in perpetuity, and have a current market price equal to 98.6 percent of face value. The tax rate is 39 percent. What is the amount of the after-tax annual interest payment made by the firm?
$678,200
$698,200
$683,200
$3,948
$733,200