What is this bond notation?

Question

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.

Flux · 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.

What is this bond notation?

One Answer

Add your own answers!

Ask a Question