Which of the following statements regarding bond prices and market interest rates are most likely to be false? 1. Coupon paying bonds will trade at a discount to their face value because of the future cash flows expected by bond investors and the time value of money. II. Interest rate risk can be described as the changes in market interest rates that will cause fluctuations in a bond's price. III. The prices of short-term bonds display greater price sensitivity to interest rate changes than do the prices of long-term bonds. O I and II only. O I, II and III. O II and III only. I and III only