7. On January 1, 2007, a company sold 12% bonds with a face value of $600,000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds yield 10%. Using the effective-interest method of amortization, interest expense for 2007 is approximately a. S60,000. b. $64,436. I c. $64.633 d. $72,000