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

question 57

Multiple Choice

A company issued 5-year,7% bonds with a par value of $100,000.The market rate when the bonds were issued was 6.5%.The company received $102,105 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)$3,318.41.
• D)$6,573.90.
• E)$1,750.00.