Using similar concepts on call on a stock, one can consider buying a 3-month call on a 10-Y Treasury bond. Which of the following is/are true?

1. When the interest rate increase, the value of the call on the bond will increase because you will receive a bond with a higer coupon.

2. The delta of the call is the same as the duration of the bond.

3. When the interest rate increases, the underlying Treasury Bond price will decrease.

A. Only 1

B. Only 2

C. Only 3

D. 1 and 2 are true

E. 2 and 3 are true