On January 1, Year 1, Denver Co. issued bonds with a face value of $87,000, a stated rate of interest of 8%, and a 5-year term to maturity. The bonds were sold at 102.5. Denver uses the straight-line method to amortize bond discounts and premiums. What is the amount of interest expense during Year 1? Multiple Choice $6.525 $7134 a $7,395 56.900 O