Question: The Pit is preparing a bond offering with a 6 percent, semiannual coupon and a face value of $ 1 , 0 0 0 .

The Pit 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?
Group of answer choices
The final payment will be in the amount of $1,060.
The bonds will pay 10 interest payments of $60 each.
The bonds will initially sell for $1,030 each.
The bonds will sell at a premium if the market rate is 5.5 percent.
The bonds will become discount bonds if the market rate of interest declines.

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