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

Multiple Choice

A company issued five-year,7% bonds with a par value of $100,000.The market rate when the bonds were issued was 6.5%.The company received $101,137 cash for the bonds.Using the effective interest method,the amount of recorded interest expense for the first semiannual interest period is:

A) $3,500.00
B) $7,000.00
C) $3,286.95
D) $6,573.90
E) $1,750.00