Suppose in 2012 you buy 3% coupon rate, $100 face value bond for $100 that has 2 years left till maturity. If in 2013 interest rates decrease to 1%, what will be the price of your bond and what will be your rate of return if you decide to sell it?
A) $98 and 1%
B) $100 and 3%
C) $102 and 5%
D) $103 and 6%