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Auerbach Inc. issued 10% bonds on October 1, 2018. The bonds have a maturity date...

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Accounting

Auerbach Inc. issued 10% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $250 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 12%. How much cash interest does Auerbach pay on March 31, 2019? (Answer should be in million rounded to two decimal places.)

$25.00 million

$15.00 million

$30.00 million

$12.50 million

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