The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at?

When a bond is selling at a price above its par value, it is referred to as selling at a premium. In this case, the bond in question is XYZ 5.50s 2030, and it last transacted at a price of 102. Since the par value of most bonds is typically 100, a price of 102 indicates that investors are willing to pay more than the par amount, reflecting greater demand or a perceived higher value for that bond based on its interest payments or other factors.

Moreover, when assessing bond prices, if the bond price exceeds 100, it signifies a premium; conversely, if it was below 100, it would be a discount. This pricing also correlates with the interest rates in the market—when market rates are lower than the coupon rate (in this case, 5.50%), the bond is more attractive and thus sells at a premium.

Therefore, understanding these price movements in relation to par and market interest rates clarifies why the chosen answer indicates that the bond is selling at a premium.