Chegg 28- Auerbach Inc. issued 10% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $475 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 12%.

Assuming that Auerbach issued the bonds for $420,515,600, what interest expense would it recognize in its 2021 income statement? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Multiple Choice

• $12,615,468.

• $25,230,936.

• $0.

• $14,250,000.