$60,000, 5-year bonds, with a 10% stated rate of interest are issued at $64,867 on January 1, 2021. The market rate of interest is 8%. Interest payments are made semi-annually on June 30 and December...

Extracted text: $60,000, 5-year bonds, with a 10% stated rate of interest are issued at $64,867 on January 1, 2021. The market rate of interest is 8%. Interest payments are made semi-annually on June 30 and December 31. How much interest expense would be recognized on the first interest payment date? Assume effective-interest amortization is used. Round your answer to the nearest dollar.