Consider these statements: Statement 1: Sovereign bonds are best described as secured obligations of a national government. Statement 2: Over time (over several coupon periods), the full price of a bond will move in a sawtooth fashion, while the flat price of the bond will move much more smoothly.

		Both statements are correct.
		Both statements are not correct.
		Only statement 1 is correct.
		Only statement 2 is correct.