The convex shape of the bond price-yield curve shows: 1. T curve is always downward sloping. 2. The curve is flatter for higher interest rate. 3. For one percentage point increase in interest rate,...

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Extracted text: The convex shape of the bond price-yield curve shows: 1. T curve is always downward sloping. 2. The curve is flatter for higher interest rate. 3. For one percentage point increase in interest rate, the bond price will decrease more when interest rate is at 7% than at 5%. O a. Both 1 and 3 are correct O b. Both 2 and 3 are correct O c. Only 3 is correct O d. Both 1 and 2 are correct O e. Only 1 is correct