On January 1, 2010, Shaky Financial Company issued 20 year bonds. The bonds had a face value of $ 25,000,000, a coupon rate of 8%, with interest being paid annually on December 31, and a maturity date of December 31, 2029. At the time the bonds were issued, investors required a rate of return of 12% for bonds with similar credit risk and maturity as the bonds issued by Shaky Financial.

Fortunately, Shaky Financial weathered the financial crisis, and hasn't missed a payment related to the bonds indicated above. How much interest interest expense will Shaky Financial report for the fiscal year ending December 31, 2020 (i.e. the eleventh year in which the bonds were outstanding) related to the bonds indicated above? Shaky Financial uses the effective interest method to record bonds.

Multiple Choice

A. $ 2,000,000

B. $ 2,322,048

C. $3,000,000

D. None of the above