Determine the recorded interest expense for the first, Ask an Expert

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problem: A company issued five year, seven percent bonds with a par value of USD 100,000. The market rate when the bonds were issued at 6.5 percent. The company received USD 101,137 cash for the bonds. Apply the straight-line method, the amount of recorded interest expense for the first semiannual interest period is

[A] 3613.70

[B] 6633.70

[C] 7000.00

[D] 3386.30

[E] 3500.00

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