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  3. adonis corporation issued 10-year, 11% bonds with

Adonis Corporation issued 10-year, 11% bonds with a par value of $110,000. Interest is paid...

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Accounting

Adonis Corporation issued 10-year, 11% bonds with a par value of $110,000. Interest is paid semiannually. The market rate on the issue date was 10%. Adonis received $116,855 in cash proceeds. Which of the following statements is true?

  • Adonis must pay $110,000 at maturity and no interest payments.

  • Adonis must pay $110,000 at maturity plus 20 interest payments of $6,050 each.

  • Adonis must pay $116,855 at maturity plus 20 interest payments of $6,050 each.

  • Adonis must pay $110,000 at maturity plus 20 interest payments of $5,500 each.

  • Adonis must pay $116,855 at maturity and no interest payments.

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