On April 1, Year 1, Greenway Corporation issues $20 million of 10%, 20-year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1.

In Year 2, Greenway's income statement will report interest expense arising from this bond issue of:

Select one:

a. $1,000,000.

b. $2,000,000.

c. $500,000.

d. $1,500,000.