Which of the following statements accurately describes a type of bond?

• Statement 1: Principalprotected bonds pay less than par at maturity when the reference index has decreased.
• Statement 2: A fiveyear bond that has a beginning principal amount of $1,000,000 and decreases by annual payments of $100,000 for the first four years and a $600,000 final payment at maturity is an example of a partially amortizing bond.
• Statement 3: A credit-linked bond has a coupon that increases with a higher credit rating and decreases with a lower credit rating.

Group of answer choices

Statement 1

Statement 2

Statement 3