Lexington Homes, Inc. is preparing a bond offering with a coupon rate of 8 percent, paid semiannually, and a face value of $1,000. The bonds will mature in 10 years and will be sold at par. Given this, which one of the following statements is correct?

		The bonds will pay 10 interest payments of $80 each.
		The bonds will become discount bonds if the market rate of interest (yield to maturity) declines.
		The bonds will sell at a discount if the market rate (yield to maturity) is 9 percent.
		The bond will initially sell for $1030.