Adonis Corporation issued 10-year, 9% bonds with a par value of $260,000. Interest is paid semiannually. The market rate on the issue date was 8%. Adonis received $277,671 in cash proceeds. Which of the following statements is true?

Adidas must pay $277,671 at maturity plus 20 interest payments of $11,700 each.

Adidas must pay $260,000 at maturity and no interest payments.

Adidas must pay $260,000 at maturity plus 20 interest payments of $11,700 each.

Adidas must pay $277,671 at maturity and no interest payments.

Adidas must pay $260,000 at maturity plus 20 interest payments of $10,400 each.