7.

A company issued 6-year, 8% bonds with a par value of $150,000. The market rate when the bonds were issued was 7.5%. The company received $151,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is?

$11,875.

$12,000.

$6,125.

$6,000.

$5,875.