Adonis Corporation issued 10-year, 7% bonds with a par value of $250,000. Interest is paid semiannually. The market rate on the issue date was 6%. Adonis received $268,603 in cash proceeds. Which of the following statements is true?

Multiple Choice

• Adonis must pay $250,000 at maturity plus 20 interest payments of $7,500 each.

• Adonis must pay $250,000 at maturity plus 20 interest payments of $8,750 each.

• Adonis must pay $250,000 at maturity and no interest payments.

• Adonis must pay $268,603 at maturity plus 20 interest payments of $8,750 each.

• Adonis must pay $268,603 at maturity and no interest payments.