KASE is in need of $465,000 to build a new prototype. Upon looking at its options, it finds it can get $465,000 in one of two ways:

• On 1/1/20X1, issuing a $465,000 of 4.06%, 5-year bond, dated 1/1/20X1, and must pay interest twice a year (semi-annually) every first of July and first of January
• On 1/1/20X1, borrowing $465,000 on a 5-year, 7% installment note payable. The terms of the note require KASE to pay 5 equal payments each December 31 for 5 years

If KASE chose the option that provided the most pre-tax Income Statement profit over 5 years, what would that option's cumulative Interest Expense over 5 years be?