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

Multiple Choice

A company issued 7%,five-year bonds with a par value of $100,000.The market rate when the bonds were issued was 7.5%.The company received $97,947 cash for the bonds.Using the effective interest method,the amount of interest expense for the first semiannual interest period is:

A) $3,750.00
B) $3,673.01
C) $3,705.30
D) $3,428.15
E) $7,346.03