Question: 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