Abloy Inc Issued $100,000,8%,5-Year Bonds

Abloy Inc issued $100,000,8%,5-year bonds.The current market rate was 7.5%.Cheryl received $101,136.80 for the bonds.Using the effective interest method of amortizing bond premium or discount,the amount of interest expense for the first semiannual payment was

A) $3,500.00
B) $3,136.32
C) $3,386,32
D) $3,792.63
E) $4,250.00