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What is this bond notation?

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.

One Answer

The last transaction in XYZ 5.50s 2030 was at 102.

  • "XYZ" is the issuer.
  • "5.50" is the coupon.
  • "s" means semiannual coupon payments.
  • "2030" is the maturity.
  • "102" is the last trade price.

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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