Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $30,000,000 of five-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,433,150. Interest is payable semiannually. Shundas fiscal year begins on January 1. The company uses the interest method.

b. Determine the bond interest expense for the first year. Round to the nearest dollar