Rohan decides to invest in bonds instead of stocks because he has heard that bonds are a lower risk investment. He uses the bond's credit rating to make his investment decisions.

Which of the following is true about the risk Rohan faces with his decision?

• The credit ratings of the bond-issuing companies will not change from one year to the next.
• If Rohan chooses bonds from a company with low credit ratings, he's almost certain to have a low default risk.
• The bond issuer may not pay him back because it may go bankrupt or become insolvent.
• The bonds' value is not affected by inflation because most bonds pay a fixed coupon rate over time.