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Chello Inc issued $200,000, 6%, 10-year bonds, with interest payable semiannually. The market rate on the issue date was 5.5%. Chello received $207,614 in proceeds.

Chello Inc issued $200,000, 6%, 10-year bonds, with interest payable semiannually. The market rate on the issue date was 5.5%. Chello received $207,614 in proceeds. Which statement best describes Chello' responsibility to the bondholders?

Select one:

A.Chello Inc must pay $200,000 at maturity plus 20 interest payments of $6,000 each.

B.Chello Inc must pay $207,714 at maturity plus 20 interest payments of $6,000 each.

C.Chello Inc must pay $200,000 at maturity plus 10 interest payments of $12,000 each.

D.Chello Inc must pay $206,948 at maturity.

E.Chello Inc must pay $200,000 at maturity.

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