Choose the correct explanations on floating rate notes $($FRN$).$

I. they are typically medium$-$term bonds with coupon payments indexed to some refere rates.

II$.$ they have extremely volatile prices between reset days.

III. they appeal to investors with strong need to preserve the principal value of the investment and to liquidate prior to the maturity of the bonds.

I and III only

I and II only

II only

$1,$ II$,$ and III

II and III only