On January 1, 2018, Hastiri Co. Sold $5,000,000 of its 10% bonds for $4,426,480 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Hastiri report as interest expense for six months ended June 30, 2018?

A) $221,330 B) $250,000 C) $265,589 D) $300,000