A company issued 6-year, 8% bonds with a par value of $650,000. The market rate when the bonds were issued was 7.5%. The company received $656,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

a. $26,000 b. $51,458 c. $25,458 d. $26,542 e. $52,000