Question 26 (5 points) 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: $3,500.00 $7,000.00 $3,318.41. $6,573.90 $1,750.00