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What is the most likely cause of the decline in the bond

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Problem 1: In 2002, Lama acquired at a premium, Jen's 10-year bonds as a long-term investment. At December 31, 2003, Lama's bonds were quoted at a small discount. What is the most likely cause of the decline in the bond's market value?

Option 1: Jag issued a stock dividend.
Option 2: Jag is expected to call the bonds at a premium, which is less than Lee's carrying amount.
Option 3: Interest rates have declined since Lee purchased the bonds.
Option 4: Interest rates have increased since Lee purchased the bonds.

Reference no: EM133009839

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