Question: Round Dot Inns is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The bonds

Round Dot Inns is preparing a bond offering with a coupon

Round Dot Inns is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The bonds will mature in 10 years and will be sold at par. Given this, which one of the following statements is correct? A) The bonds will become premium bonds if the market rate of interest decreases. B) The bonds will pay 10 interest payments of $60 each. C) The bonds will sell at a discount if the market rate is 5.5 percent. D) The bonds will initially sell for $1,030 each

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