A company issued 5-year, 7% bonds with a par value of $700,000. The market rate when the bonds were issued was 6.5%. The company received $707,000 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: Multiple Choice $49,000. $48,300. $25,200. $23,800. $24,500.