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?
A) $2925
B) $5850
C) $4800
D) $9600
A) $2925
Explanation: Principal amount $39,000
Rate of interest 15.00%
No. of months 6
Total amount paid to bondholders ($39,000 × 15% × 1/2) $2925
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