Designer Company issued 10 -year bonds on January 1 . The 10% bonds have a face value of $92,000 and pay interest every January 1 and July 1 . The bonds were sold for $110,962 based on the market interest rate of 8%. Designer uses the effective interest rate method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (rounded to the nearest dollar) of a. $3,680 b. $4,438 c. $4,600 d. $5.548