On January 1, 2021, ABC Manufacturing issues a 5-year bond with a face value of $100,000 and a stated interest rate of 7%. The bonds pay interest semi-annually on June 30th and December 31st. The market interest rate at the date of issuance was 5% and the issuance price of the bonds was $108.752. Using the effective interest method of amortization and rounding to the nearest dollar, the interest expense for the first interest payment on June 30, 2021 would be: Multiple Choice $2.719 $3,805 o $3.500 $2.500