(Please show work)
On January 1, 2020, Clare Corporation issued $700,000, 6%,5-year bonds. The bond interest is payable on January 1 and July1. The bonds sold for $762,878. The market rate of interest whenthe bonds were issued was 4%. Under theeffective-interest method, theinterest expense for the six months ending July 1, 2020, would beclosest to?