Chantilly Company issued $25 million of bonds with a life of 10 years. The stated rate of interest was 8% and the market rate was 7%. Interest is paid semi annually. Which of the following statements is correct?

Group of answer choices

The interest expense is $175,000 through the life of the Bonds

The book value of the bond will increase as the bond matures.

The first interest payment is $1,000,000

The bonds were issued at a discount.