Adonis Corporation issued 10-year, 7% bonds with a par value of$130,000. Interest is paid semiannually. The market rate on theissue date was 6%. Adonis received $139,674 in cash proceeds. Whichof the following statements is true?
Adonis must pay $139,674 at maturity plus 20 interest paymentsof $4,550 each.
Adonis must pay $130,000 at maturity plus 20 interest paymentsof $4,550 each.
Adonis must pay $130,000 at maturity plus 20 interest paymentsof $3,900 each.
Adonis must pay $139,674 at maturity and no interestpayments.
Adonis must pay $130,000 at maturity and no interestpayments.
