A company issued 8.0%, 5-year bonds with a par value of $100,000. The market rate when the bonds were issued was 8.5%. The company received $97,997.28 cash for the bonds. Using the effective interest method, the amount of interest expense for the second semiannual interest period is:
Multiple Choice
a. $4,000.00.
b. $8,336.77.
c. $4,164.88.
d. $4,171.89.
e. $8,000.00.