Question: A company issued 5-year, 7% bonds with a par value of $1,000,000. The market rate when the bonds were issued was 6.5%. The company received

A company issued 5-year, 7% bonds with a par value of $1,000,000. The market rate when the bonds were issued was 6.5%. The company received $1,021,056 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

Multiple Choice

$66,365.51.
$36,345.51.
$32,894.40.
$70,000.00.
$35,000.00.

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