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Adonis Corporation issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adonis received $206,948 in cash proceeds. Which of the following statements is true?

a. Adidas must pay $200,000 at maturity and no interest payments.

b. Adidas must pay $206,948 at maturity and no interest payments.

c. Adidas must pay $200,000 at maturity plus 20 interest payments of $8,000 each.

d. Adidas must pay $206,948 at maturity plus 20 interest payments of $8,000 each.

e. Adidas must pay $200,000 at maturity plus 20 interest payments of $7,500 each.

 

 

Reference no: EM13913580

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