TB MC Qu$.10-112($Static$)$ A company issued...

A company issued $5-$year, $7\%$ bonds with a par value of $$100,000.$ The market rate

when the bonds were issued was $6\mathrm{.}5\%.$ The company received $$102,108$ cash for

the bonds. Using the effective interest method, the amount of recorded interest

expense for the first semiannual interest period is:

Multiple Choice

$$3,500\mathrm{.}00.$

$$7,000\mathrm{.}00.$

$$3,318\mathrm{.}51.$

$$6,573\mathrm{.}90.$

$$1,750\mathrm{.}00.$