Auerbach Inch. issued 4% bond on October 1, 2021. The bond have a maturity date of September 30,2031 and face value of $475 million. The bond pay interest each March 31 an September 30, beginning March 31 2022. The effective interest rate established by the market was 6% .

Assuming that Auerabach issued the bond for $404,333,965 what interest expense would it recognize in its 2021 income statement?

$0

$6,065,009

$12,130,019

$7,125,000