If a bond is selling at 98 it is selling at Select one A A d

If a bond is selling at 98, it is selling at:

Select one:

A. A discount.

B. A premium.

C. At $98 per bond.

D. At face value

Solution

A.A discount.

bond sellling at 98 means it is selling at 98% of face value (usually the face value is referred to as $1,000).

If a bond is selling at below its face value, it is said to be selling at discount.

If it is selling at 100, it means it is selling at facevalue.

If it is selling at more than 100, it is selling at premium.