Auerbach Inc. issued 6% bonds on October 1. 2016. The bonds have a maturity date of September 30,2026 and a face value of $350 million. The bonds pay interest each March 31 and September 30. beginning March 31.2017. The effective interest rate established by the market was 8%. Assuming that Auerbach issued the bonds for $302,434,965. what interest expense would it recognize in its 2016 income statement? $7,000,000. $0. $6,048,699. $12,097,399