Which of the following statements regarding bond prices and market interest rates are most likely to be true?

1. Bond prices and market interest rates will move in the opposite direction.
2. Interest rate risk can be described as the changes in market interest rates that will cause fluctuations in a bonds price.
3. The prices of long-term bonds display greater price sensitivity to interest rate changes than do the prices of short-term bonds.

Group of answer choices

I and II only.

I and III only.

II and III only.

I, II and III.