Squabb Corporation issued a $$12,000,000,5-$year bond, with a contract rate of $8\%.$ The market rate of interest for similar bonds was $6\%.$ Interest is payable semi$-$annually.

What is the amount of interest expense Squabb Corporation will recognize with each semi$-$annual interest payment to bondholders? Round to the nearest whole dollar.

a$)$$$480,000$

b$)$$$474,611$

c$)$$$582,358$

Blu$-$Star Corporation issues a $$15,000,000,20-$year bond with a contract rate of $9\%.$ The market rate of interest for similar bonds is $10\%.$ Interest is payable semi$-$annually.

What is the amount of interest expense Blu$-$Star Corporation will recognize with each semi$-$annual interest payment to bondholders? Round to the nearest whole dollar.

a$)$ $$491,300$

b$)$ $$707,172$

c$)$ $$822,200$

d$)$ $$675,000$