Broom Inc issued $100,000, 8%, 5 year bonds. The current market rate was 7.5%. Broom received $101,136.80 for the bonds. Using the effective interest method of amortizing bond premium or discount, the amount of interest expense for the first semiannual payment is: a) $3,136.32. b) $3,386,32 c) $3,500.00 d) $3,792.63