Anyone who owns bonds is subject to interest rate risk because interest rates are always changing in financial markets. The prices of bonds fluctuate with changes in interest rates, giving rise to interest rate risk. A number of relations exist between bond prices and changes in interest rates. These relations are often called the bond theorems. All of the following theorems correctly explain the relationship between interest rates and bond prices except:

Group of answer choices

The lower the coupon of a bond, the greater its interest rate risk.

The longer the maturity of a bond, the greater its interest rate risk.

If the bond yield is greater than the coupon rate, the bond sells at a premium.

When bond yields rise, bond prices fall.