On January 1, 2008, a company issued 10%, 10-year bonds payable with a par value of $720,000. The bonds pay interest on July 1 and January 1. The bonds were issued for $817,860 cash, which provided the holders an annual yield of 8%. What is the amount of the semi-annual interest expense? I am really confused by this one. I cannot figure out if it is sold at a discount or a premium. Is there just extra information here that is confusing me? Please compute and advise.