Question: Explain why B is the correct answer. 24. A bond traded at 102 1% means that: A. The bond pays 2.5% interest. B. The bond

Explain why B is the correct answer.

24. A bond traded at 102 1% means that: A. The bond pays 2.5% interest. B. The bond traded at $1,025 per $1,000 bond. C. The market rate of interest is 2.5%. D. The bonds were retired at $1,025 each. E. The market rate of interest is 2 % above the contract rate

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