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 $97,947 cash for the bonds. Using the effective interest method, the amount of interest expense for the first semiannual interest period is: A- $3,500.00. B- $3,673.01. C- $3,705.30. D- $7,000.00. E- $7,346.03