A municipal variable rate demand note $($VRDN$)$:

$1)$ is a long$-$term security

$2)$ has interest payments linked to the level of short$-$term interest rates

$3)$ may periodically be sold back to the issuer at face value

$4)$ is tax$-$exempt

Multiple Choice

$1,2,3,$ and $4$

$1$ only

$1$ and $2$ only

$1,2,$ and $3$ only