A Company Issued 10-Year,8% Bonds with a Face Value of $200,000.Interest

Multiple Choice

A company issued 10-year,8% bonds with a face value of $200,000.Interest is paid annually.The market rate on the issue date was 7.5% and the company received $206,948 in cash proceeds.Which of the following statements is correct?

A) The company must pay $184,000 at maturity plus $16,000 in interest each year for 10 years.
B) The company must pay $206,948 at maturity plus $15,000 in interest each year for 10 years.
C) The company must pay $200,000 at maturity plus $16,000 in interest each year for 10 years.
D) The company must pay $200,000 at maturity plus $15,000 in interest each year for 10 years.