McVay Corporation issued $200,000 of 60% 10-year bonds. The bonds are dated and sold on January 1, 2016. Interest payment dates are January 1 and July 1 Tre bonds are issued to yield the market interest rate of 7%. The price of the bonds (amount raised from issuance) is $185788. McVay Corporation uses the method. What is the amount of interest expense that McVay Corporation will record on July 1, 2016, the first semiannual interest payment date? (All amounts rounded to the nearest dollar.) O A. $503. OB, $6.503 O C. $7.490 O D. $6,000