Which of the following is TRUE regarding Principal Protected Notes $($PPNs$)?$

I. They are debt instruments issued by creditworthy financial institutions $.$

II$.$ They guarantee repayment of at least the original principal upon maturity $.$

III. They pay a rate of interest that is usually $1\%$ to $3\%$ higher than the government $10$ year bond.

IV$.$ Your PPN income is taxed as interest income.

I and III only

II$,$ III and IV only

I, II and IV

II and IV only