Nike issued 25-year, 7% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 6.5%. Nike received $211,568 in cash proceeds. Which of the following statements is true?
A Nike must pay $211,568 at maturity and no interest payments.
B Nike must pay $200,000 at maturity and no interest payments.
C Nike must pay $211,568 at maturity plus 50 interest payments of $7,000 each.
D Nike must pay $200,000 at maturity plus 25 interest payments of $6,000 each.
E Nike must pay $200,000 at maturity plus 50 interest payments of $7,000 each.