Which of the following statements is$/$are FALSE?

I. YTM is the discount rate that sets the present value of the promised bond payments equal to the current market price of the bond.

II$.$ The realized return is always equal to the YTM$.$

III. The higher bond ratings, the higher probability of default.

A$.1$

B$.$ II

C$.$ III

D$.$ II$,$ III

E$.$ I, II$,$ III