Jay Inc. plans to issue $5-$year, $6\%,$ $$500,000$ bonds, paying interest on an annual basis at a $$3,500$ discount. $$Which one of the following statements is true? $1)$ The cash paid to bondholders will be $$3,500$ each year $2)$ Jay will receive $$503,500$ as the issue price $3)$ The effective rate of interest on the bonds is lower than $6\%4)$ Jay$$s annual interest expense on the bonds will be greater than the amount of interest payments to bondholders each year