AF is preparing a bond offering with an 8% coupon rate. Each of the bonds has a face value of $1,000 and will be repaid in 10 years. The company plans to issue the bonds at a premium and pay interest semi-annually. Which of the following statements is/are correct?

I. The initial selling price of each bond will be higher than $1,000.

II. After the bonds have been outstanding for 1 year, you should use 18 as the number of sub-periods when calculating the market value of the bond.

III. The annual coupon interest payment will be $80.

IV. The yield to maturity when the bonds are first issued is lower than 8%.

A. I and II only

B. II and III only

C. II, III, and IV only

D. I, II, and III only

E. All of the above