A $$1,000$ bond trading at $102(1)/(2)$ means that:

$$

$$ A$)$ The bond pays $2\mathrm{.}5\%$ interest.$$

$$ B$)$ The bond traded is bought or sold for $$1,025.$

$$ C$)$ The market rate of interest is $2\mathrm{.}5\%.$

$$ D$)$ The bonds were retired at $$1,025$ each.

$$ E$)$ The market rate of interest is $2(1)/(2)\%$ above the contract rate.