Target Corp. is preparing a bond offering with a 6 percent, semiannual coupon and a face value of $1,000. The bonds will be repaid in 10 years and will be sold at par. Given this, which one of the following statements is correct?

The bonds will become discount bonds if the market rate of interest declines

The bonds will sell at a premium if the market rate is 5.5 percent

The bonds will pay 10 interest payments of $60 each The bonds will initially sell for $1,030 each