Adonis Corporation issued 10-year, 9% bonds with a par value of $120,000. Interest is paid semiannually. The market rate on the issue date was 8%. Adonis received $128,156 in cash proceeds. Which of the following statements is true?

Multiple Choice

• Adonis must pay $120,000 at maturity and no interest payments.

• Adonis must pay $120,000 at maturity plus 20 interest payments of $4,800 each.

• Adonis must pay $128,156 at maturity plus 20 interest payments of $5,400 each.

• Adonis must pay $120,000 at maturity plus 20 interest payments of $5,400 each.

• Adonis must pay $128,156 at maturity and no interest payments.