Financial instruments

Dear Sir,
I have a question in the ACCA Study Hub

On 1 January 20X2, XYZ issued $1m 4% loan notes, at a discount of 5%. The loan notes are redeemable in five years at a premium of 10%.

What are the total finance costs that should be charged to profit or loss over the five-year term of the loan notes?

A.$350,000
B.$345,000
C.$250,000
D.$200,000

The answer is A.

However, in my thought, I will calculate the actual price at which the loan is issued = 95%*1,000,000 = 950,000. The price at which the loan note is redeemed is 110%*1,000,000 = 1,100,000
-> The total interest company XYZ has to suffer is = 1,100,000 – 950,000 = 150,000$

I want to ask if there is anything wrong in my understanding?

Thank you Sir!