On June 1, 2015, Smith Services issued $36,000 of 8% bonds that mature in five years for $45,000. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2015, how much is the total interest paid to bondholders?

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The bonds have a face value of $36,000 with an 8% annual interest rate, resulting in annual interest of $2,880 ($36,000 * 8%). Since interest is paid semiannually, each payment is $1,440 ($2,880 / 2). By December 31, 2015, only one semiannual payment has been made.

On June 1, 2015, Smith Services Issued $36,000 of 8