A bond with a par value of $1,000 trading at 97½ sells for a premium.

Name: A bond with a par value of $1,000 trading at 97½ sells for a premium.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A bond selling at a discount has a price lower than its par value, while a bond selling at a premium has a price higher than its par value. Therefore, a bond with a par value of $1,000 trading at 97 1/2 would be selling at a discount, not a premium.

A Bond with a Par Value of $1,000 Trading at 97½