Adonis Corporation issued 10-year, 11% bonds with a par value of $110,000. Interest is paid...
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Accounting
Adonis Corporation issued 10-year, 11% bonds with a par value of $110,000. Interest is paid semiannually. The market rate on the issue date was 10%. Adonis received $116,855 in cash proceeds. Which of the following statements is true?
Adonis must pay $110,000 at maturity and no interest payments.
Adonis must pay $110,000 at maturity plus 20 interest payments of $6,050 each.
Adonis must pay $116,855 at maturity plus 20 interest payments of $6,050 each.
Adonis must pay $110,000 at maturity plus 20 interest payments of $5,500 each.
Adonis must pay $116,855 at maturity and no interest payments.
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