TRUE OR FALSE

1. Short maturity bonds have lower price volatility than long maturity bonds.

2. For a given maturity, high coupon bonds have lower price volatility than low coupon bonds.

3. Except for management fees, owning a bond mutual fund is financially equivalent to owning a share of the bonds themselves.

4. When interest rates rise, the coupons on existing bonds and bond mutual funds rise.

5. Individuals can buy newly issued Treasury securities directly from the Treasury without commissions or fees.