Texxon Corporation issued $500,000 of 8%, 10-year bonds. Interest is paid semiannually. Assume that the market rate for similar investments is 6 percent.

1. How much bond interest expense should be recorded on the first semi-annual interest payment date?

a. $45,963.20

b. $17,236.20

c. $22,981.60

d. $34,472.40