On July 1,2019,Reliable Services issued $39,000 of 15% bonds that mature in five years for $64,000.The bonds pay semiannual interest payments on June 30 and December 31 of each year.On December 31,2019,what is the total amount paid to bondholders?

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Quizplus · Accepted Answer

The total amount paid to bondholders on December 31, 2019, would be the semiannual interest payment. The annual interest is 15% of $39,000, which is $5,850. Since interest is paid semiannually, each payment is half of the annual interest, so $5,850 / 2 = $2,925.

On July 1,2019,Reliable Services Issued $39,000 of 15% Bonds That