On January 1, 2007, Maltrex Corporation issued 8% bonds which mature on December 31, 2011 and which have a face

value of $100,000. The bonds are sold for $95,000 and pay interest semiannually on June 30 and December 31. If Maltrex

uses the straight-line method for amortization of the bond discount/premium, the bond interest expense for the year ended

December 31, 2007, is

A. $9,000

B. $6,375

C. $8,600

D. $6,600

Please explain how you determined your answer.