Fixed Income Q4

4A bond with a par value of $10,000 is currently quoted at 102. What is the current market price of the bond? Is it trading at a discount or a premium to its par value?

Option : C
Explanation : A bond quoted at 102 reflects a premium of 2% over its par value. This results in current market price of $10,200. Since the market price is greater than the par value, the bond is trading at a premium.

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