Adonis Corporation issued 10-year, 7% bonds with a par value of $280,000. Interest is paid semiannually. The market rate on the issue date was 6%. Adonis received $300,836 in cash proceeds. Which of the following statements is true?

Multiple Choice

• Adonis must pay $280,000 at maturity plus 20 interest payments of $8,400 each.

• Adonis must pay $280,000 at maturity and no interest payments.

• Adonis must pay $280,000 at maturity plus 20 interest payments of $9,800 each.

• Adonis must pay $300,836 at maturity plus 20 interest payments of $9,800 each.

• Adonis must pay $300,836 at maturity and no interest payments.