Bond Pricing
A bond trading at 95 is trading at:
Bond at 95 = $950. Bond at 105 = $1,050. Par = 100 = $1,000.
Complete Analysis & Legal Rationale
Bond prices are quoted as a percentage of par (face value). A bond at 95 is trading at 95% of par ($950 for a $1,000 bond), which is a discount. Premium = above 100, discount = below 100.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
A premium would be above 100 (e.g., 105 = $1,050).
Matches the verified teaching point in the explanation.
Par value is exactly 100 (100% of face value).
Face value is the same as par - this bond is below face value.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.