Jane Cooper Industries plans to issue 8-year, 8%, $200,000 bonds paying interest on an annual basis, at a $4,000 premium. Which one of the following statements is true?

Select one:

A. Jane Cooper's annual interest expense on the bonds will be greater than the amount of interest payments to bondholders each year.

B. The cash paid to bondholders will be $4,000 each interest period.

C. Jane Cooper will receive $196,000 as the issue price.

D. Jane Cooper's annual interest expense on the bonds will be less than the amount of interest payments to bondholders each year.