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A company issued 7%, 5-year bonds with a par value of $125,000. The market rate when the bonds were issued was 8%. The company received

A company issued 7%, 5-year bonds with a par value of $125,000. The market rate when the bonds were issued was 8%. The company received $119,935 cash for the bonds. Using the effective interest method, the amount of interest expense for the first semiannual interest period is:

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