A Company Issued 7%,5-Year Bonds with a Par Value of $100,000.The

Multiple Choice

A company issued 7%,5-year bonds with a par value of $100,000.The market rate when the bonds were issued was 7.5%.The company received $97,946.80 cash for the bonds.Using the effective interest method,the amount of interest expense for the second semiannual interest period is:

A) $3,500.00.
B) $3,679.49.
C) $3,673.01.
D) $7,000.00.
E) $7,346.03.