Go Green Go White Inc. is preparing a new bond offering with a 7 percent, semiannual coupon and a par value of $1,000. The bonds will be repaid in 10 years and will initially be sold at par. Given this, which one of the following statements is correct?
A The final payment will be in the amount of $1,070
B The bonds will become premium bonds if the market rate of interest increases
C The bonds will initially sell for $1,035 each
D The bonds will pay 20 interest payments of $35 each
E The bonds will sell at a discount if the market rate becomes 5.5 percent