Auerbach Inc. issued 8% bonds on October 1, 2013. The bonds have a maturity date of September 30, 2023 and a face value of $400 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2014. The effective interest rate established by the market was 10%.

Assuming that Auerbach issued the bonds for $350,151,360, what interest expense would it recognize in its 2013 income statement? (Do not round your intermediate calculation.)