What does the quotation DEF5s35@106 indicate about the bond?

• A. A 5% coupon bond maturing in 2035 priced at 106.
• B. A zero-coupon bond maturing in 2035 priced at 106.
• C. A 5% coupon bond maturing in 2035 priced at 90.
• D. A 3.5% coupon bond maturing in 2035 priced at 106.

Answer: (A)

Bond quotes encode coupon rate, maturity year, and price. In this quotation, the 5 shows a 5% annual coupon, the 35 indicates a maturity in 2035, and the @106 means a price of 106% of par (i.e., $106 for every $100 of par). The issuer code at the start isn’t changing the interpretation—it’s just the name. Because the price is above 100, the bond trades above par, and the coupon rate is 5% per year. This aligns with a 5% coupon bond maturing in 2035 priced at 106. It’s not a zero‑coupon, and the coupon isn’t 3.5%, nor is the price 90.