Question $10(0\mathrm{.}125$ points$)$

A bond traded at ${102}^{\frac{11}{2}}$ means that:

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

The bond traded at $102\mathrm{.}5\%$ of its par value.

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

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

The market rate of interest is $2\frac{1}{2}\%$ above the contract rate.