On January 1, your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 7%. The market interest rate is 5%. The issue price of the bond was $10,986. Using the effective-interest method of amortization, the interest expense for the first year ended December 31 would be: Multiple Choice O $500.00 $700.00 O $769.02. O O $549.30