QUESTION 12 A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $102,105 cash for the bonds. Using the effective Interest method, the amount of recorded interest expense for the first semiannual interest period is A $3.500.00 B. $7,000.00 C. $3,318.41. D. 56,573.90 E. $1,750.00