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Suppose you bought a Terrapin Aluminum Company bond two years ago. At the time, the semiannual...

Suppose you bought a Terrapin Aluminum Company bond two years ago. At the time, the semiannual bond had 10-years to maturity, $1000 par value, with a coupon rate of 2%. Two years ago when you bought the bond, the market interest rates were 1%. You still own the bond today but interest rates have increased to 3%. When you purchased the bond two years ago, what was its price, and what is the new price of the bond today?

Group of answer choices The price at purchase was $1048.65; the current price of the bond is $1039.11.

The price at purchase was $1094.94; the current price of the bond is $929.34.

The price at purchase was $1180.46; the current price of the bond is $1000.

The price at purchase was $1094.71; the current price of the bond is $1076.52.

The price at purchase was $1000.00; the current price of the bond is $1076.70.

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