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