A bond with a 6% coupon trading at an 8.34% basis is likely trading at which price level?

When a bond has a coupon rate of 6% but is trading at a basis (or yield) of 8.34%, it indicates that the market is demanding a higher return than what the bond is currently offering. This situation typically arises when the bond's interest payments are less attractive than the prevailing market rates for new bonds.

In this context, if investors can obtain new bonds with higher yields, they will not be willing to pay full price for existing bonds that offer lower interest rates. As a result, the bond would need to be sold at a discount to make it attractive enough for buyers. The difference between the coupon rate and the yield leads investors to lower their price expectations, causing the bond to trade below par value.

Thus, with a coupon rate of 6% compared to a higher market yield of 8.34%, the bond is indeed trading at a discount, which aligns with the correct answer.