Which of the following statements is correct?

1 Bonds are always issued (sold) at their par value.

2 Bonds issued at more than par value are said to be issued at a discount.

3 Once bonds are issued, the bonds will trade in the bond market above or below par depending on changes in interest rates.

4 Bondholders must hold their bonds to maturity to receive cash for their investment.

5 None of the above