NBC Corporation issued $630,000, 12%, 5-year bonds on January 1, 2023 for $678,647 when the market interest rate was 10%. Interest is paid semiannually on January 1 and July 1. The corporation uses the effective - interest method to amortize bond premium. The total amount of bond interest expense recognized on July 1, 2023 is: O A. $37,800. OB. $31,500. OC. $33,932. O D. $40,719.

A. $37,800 B. $31,500 C. $33,932 D. $40,719