Adonis Corporation issued 10-year, 7% bonds with a par value of $160,000. Interest is paid semiannually. The market rate on the issue date was 6%. Adonis received $171,906 in cash proceeds. Which of the following statements is true?

Multiple Choice

• Adonis must pay $160,000 at maturity and no interest payments.

• Adonis must pay $171,906 at maturity and no interest payments.

• Adonis must pay $160,000 at maturity plus 20 interest payments of $4,800 each.

• Adonis must pay $171,906 at maturity plus 20 interest payments of $5,600 each.

• Adonis must pay $160,000 at maturity plus 20 interest payments of $5,600 each.