OMT Inc. is planning to issue a $1,000 face-value bond with an annual coupon rate of 7%

that matures in 10 years. TRU is planning to pay semi-annual interest payments. Similar OMT bonds are quoting at 98.5% of par. What is the price that bond holders will pay for this

bond?

$985.00

$1,000.00

$1070.00

$915.00

None of the above