Alexa Company issued 5-year, 7% bonds with a par value of $100,000. The company received $97,947 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is:
A) $3,294.70.
B) $3,500.00.
C) $3,705.30.
D) $7,000.00.
E) $7,410.60.
Ans: C) $3,705.30.
Business
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