Adidas
issued 10-year, 11% bonds with a par value of $300,000. Interest is
paid semiannually. The market rate on the issue date was 10%. Adidas
received $318,696 in cash proceeds. Which of the following statements is
True?
| Adidas must pay $300,000 at maturity and no interest payments. | |
| Adidas must pay $318,696 at maturity plus 20 interest payments of $16,500 each. | |
| Adidas must pay $300,000 at maturity plus 20 interest payments of $15,000 each. | |
 | Adidas must pay $300,000 at maturity plus 20 interest payments of $16,500 each. |
| Adidas must pay $318,696 at maturity and no interest payments. |
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