A company issued 5-year, 15.50% bonds with a par value of $117,000. The market rate when the bonds were issued was 15.00%. The company received $119,462 cash for the bonds. Using the effective interest method, the amount of recorded interest expense for the first semiannual interest period is:

$9,067.50.

$18,135.00.

$8,960.

$17,856.38.

$4,533.75.