A company has issued 10% 2037 bonds redeemable at par, which have a current market value of 115 per 100 nominal value.

Which ONE of the following statements about these bonds IS true?

a.

Each bond pays interest of 11.50 per annum and is to be repaid in 2037 at 115.

b.

Each bond pays interest of 10 per annum and is to be repaid in 2037 at 100.

c.

There is no obligation for the issuer to repay the bonds and interest will be paid at the coupon rate in perpetuity.

d.

Each bond pays interest of 11.50 per annum and is to be repaid in 2037 at 100.