XYZ Company files for bankruptcy, triggering payments on various CDS contracts written on its obligations. It has two series of senior unsecured bonds outstanding:

Bond A trades at 35% of par, and

Bond B trades at 25% of par.

The CDS protection on bond A was negotiated at 250 bps credit spread, and the one on bond B at 225 bps.

Audrey owns $8,000,000 of Bond A and owns $8,000,000 of CDS protection.

Brendan owns $8,000,000 of Bond B and owns $8,000,000 of CDS protection.

a. What was the amount of the quarterly payment made by Audrey before the bankruptcy?

Round your answer to the nearest dollar.