On January 1, 2026, Stan Company issued a 5-year, $600,000 note at variable interest, interest payable semiannually. Stan now wants to change the note to a fixed rate note. As a result, on January 1, 2026, Stan enters into an interest rate swap with Blend Bank where Stan agrees to pay 5% fixed and receive LIBOR of 4.6% for the first six months on $600,000. At each six-month period, the variable interest rate will be reset and apply to the next six-month period. The variable rate is reset to 5.6% on June 30, 2026. Stan designates this swap as a cash flow hedge.

What is the net interest expense to be reported by Stan for this note and related swap transaction for the six-month period ending on June 30, 2026?