Which of the following is a true statement? I. All else the same, the value of a perpetual bond will remain unchanged from one year to the next, unless market interest rates change. II. All else the same, bond prices and coupon rates are inversely related. III. For two bonds identical but for coupon, the market price of the lower coupon bond will change more (in percentage terms) than that of the higher coupon bond for a given change in market interest rates.

Select one:

a. I and II only

b. I and III only

c. I only

d. II and III only

e. I, II, and III