A company issued 5-year, 7% bonds with a par value of $400,000. The market rate when me bonds were issued was 6.5%. The company received $404,000 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: $14,000. $27, 600 $13, 600 $28,000. $14, 400