Owers Divestiture Corporation, a firm speculating in corporate reorganizations, has bonds outstanding that were originally issued at par but are now selling, on September 1, 2002, for $1,050 per $1,000 face value. The bonds have a stated interest rate of 8% and mature on January 1, 2012. The bonds pay interest semi-annually on July 1 and January 1 each year. Suppose that an investor buys a $1,000 face value bond on September 1, 2002. What dollar amount will the investor pay to the seller on September 1, 2002?
E) none of the above.
Therefore , option A is correct.
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