1. A bond traded at 102/2 means that: A. The bond traded at $1,025 per $1,000 bond. B. The market rate of interest is 2.5%. C. The market rate of interest is 2 % above the contract rate. D. The bonds were retired at $1,025 each E. The bond pays 2.5% interest. 2. When a bond sells at a premium: A. The contract rate is above the market rate. B. The bond pays no interest. C. The contract rate is equal to the market rate. D. The contract rate is below the market rate. E. It means that the bond is a zero coupon bond