A company issued 10.0%, 5-year bonds with a par value of $260,000. The market rate when the bonds were issued was 11.0%. The company received $250,201.09 cash for the bonds. Using the effective interest method, the amount of interest expense for the second semiannual interest period is:

Multiple Choice

• $13,000.00.

• $13,802.92.

• $13,761.06.

• $26,000.00.

• $27,563.98.