QUESTION 10 A company issued 7%. 5-year bonds with a par value of $100,000. The market rate when the bonds were issued was 7.5%. The company received $97,947 cash for the bonds. Using the effective interest method, the amount of interest expense for the first semiannual interest period is: A. $3,500.00 B. $3,673.01 C. $3,705.30. D. $7,000.00 E. $7,346.03