Question $3(3$ points$)$

Which of the following statements are false?

If interest rates increase the holding period yield $($HPY$)$ on bonds will likely decrease.

An increase in interest rates will cause the current yield on a bond to increase.

Treasury bonds have more credit risk than corporate bonds.

Zero$-$coupon bonds can sell at a premium.

Statement one $(1)$ is false.

Statement two $(2)$ is false.

Statement three $(3)$ is false.

Statement four $(4)$ is false.