Personal Finance & Money Asked by PintoBox on March 26, 2021
I’m taking practice exams for the SIE and along came this question:
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
Answer: a premium.
I understand the basics of bonds (I think), but the textbook I used while preparing for the exam never used this notation, and I’m having trouble formulating a useful search query. Can someone please explain what’s going on here? Thanks.
The last transaction in XYZ 5.50s 2030 was at 102.
The bond was sold at $102, which is above par ($100), so the bond sold at a premium.
Answered by Flux on March 26, 2021
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