A $$1,000$ bond trading at $102\frac{1}{2}$ 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 $2\frac{1}{2}\%$ above the contract rate.