38. At the beginning of the year, Gem issued a P20,000, 9%, five-year, bond at a yield rate of 7%. The interest is payable at the end of each year. Using the interest method of amortization, bond interest expense for Gem for the first year would be: (a) P1,800 (b) P1,515 (c) P1,400 (d) P1272 B