On June 1, 2015, Smith Services Issued $30,000 of 7

question 9

Multiple Choice

On June 1, 2015, Smith Services issued $30,000 of 7.50% bonds that mature in five years. They were sold at a premium, for a total of $31,250. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2015, how much is the total amount paid to bondholders?

• A)$1,125.00
• B)$2,250.00
• C)$1,171.88
• D)$2,343.75