A company issued 5-year, 7% bonds with a par value of $800,000. The market rate when the bonds were issued was 6.5%. The company received $808,000 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

$55,200.

$28,000.

$27,200.

$28,800.

$56,000.