Adonis Corporation issued 10-year, 11% bonds with a par value of $300,000. Interest is paid semiannually. The market rate on

Adonis Corporation 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%. Adonis received $318,696 in cash proceeds. Which of the following statements is true?

a. Adonis must pay $300,000 at maturity plus 20 interest payments of $16,500 each.
b. Adonis must pay $300,000 at maturity and no interest payments.
c. Adonis must pay $318,696 at maturity plus 20 interest payments of $16,500 each.
d. Adonis must pay $300,000 at maturity plus 20 interest payments of $15,000 each.
e. Adonis must pay $318,696 at maturity and no interest payments.


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