On July 1, 2018, Electrical Services issued $37,000 of 8% bonds that mature in five years. The bonds were issued at a premium, for a total of $38,665. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2018, what is the total amount paid to bondholders?
A) $1480
B) $2960
C) $1547
D) $3093
A) $1480
Explanation: Principal Amount $37,000
Rate of interest 8%
No. of months 6
Total amount paid to bondholders ($37,000 × 8% × 1/2) $1480
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