A company issued 10-year, 7% bonds with a par value of $100,000. The company received $96,526 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is:
A. $3,673.70.
B. $7,000.00.
C. $3,500.00.
D. $3,326.00.
E. $7,347.40.
Answer: A
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