Which of the following statements is correct with regard to bond valuation:

Question 2 options:

	All else equal, the longer the time to maturity, the greater the interest rate risk.
	All else equal, the higher the coupon rate, the greater the interest rate risk
	When coupon rate is lower than the market interest rate, the bond will sell at a premium.
	Bond price can rise as the market interest rate rises, as the present value of the bond's future cash flows is obtained by discounting at a higher interest rate.