SIE (Securities Industry Essentials) Practice Exam

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If the last transaction in ABC 6s 2030 was at 98, this bond is selling at:

par
a premium
a discount
its face value

The correct answer is: a discount

The last transaction in ABC 6s 2030 was at a price of 98, which is below the bond's face value of 100. This means that the bond is selling at a discount, since it is being sold for less than its face value. Option A is incorrect because par refers to a bond's face value, which is not equal to its selling price. Option B is incorrect because a premium is when a bond is sold for more than its face value. Option D is incorrect because its face value is the same as its par value, which is not equal to the selling price. Therefore, the correct answer is C, as the bond is being sold at a discount.