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A company issued 7 % , 5 - year bonds with a par value of $ 1 0 0 , 0 0 0 . The

A company issued 7%,5-year bonds with a par value of $100,000. The market rate when the bonds were issued was 7.5%. The company received $97,948 cash for the bonds. Using the effective interest method, compute the amount of interest expense for the second semiannual interest period (round to 2 decimals).

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