On January 1, 20X3, Jacey Corporation issues $1,000,000 in serial bonds with a stated rate of interest of 5% and an effective rate of interest of 7%. The term of the bonds is 2 years, so $500,000 in principal is repaid at the end of each year. Determine the cash interest paid at the end of 20X4. O $12,500 O $25,000 O $70,000 O $50,000 $34,346