Auerbach Inc. issued 4% bonds on October 1, 2013. The bonds have a maturity date of September 30,2023 and a face value of 300 million. the bonds pay interest each March 31 and September 30, beginning March 31, 2014. the effective interest rate established by the market was 6%. assuming that Auerbach issued the bonds for $255,369,000, what interest expense would it recognize in its 2013 income statement?
A. $0
B. $3,830,535
C. $5,107,380
D. 7,661,070.