You purchase a $10,000 bond with a bond rate of 6% per year payable semiannually for 2 years. You pay $9,600 for the bond. Which statement is correct?
A) Semiannual cashflow will be -$9,600, $300, $300, $300, and $9,900, and the bond will earn more than 10%.
B) Semiannual cashflow will be -$9,600, $300, $300, $300, and $9,900, and the bond will earn less than 10%.
C) Semiannual cashflow will be -$9,600, $300, $300, $300, and $10,300, and the bond will earn more than 10%.
D) Semiannual cashflow will be -$9,600, $300, $300, $300, and $10,300, and the bond will earn less than 10%.