Which of the following statements is true$$about bonds?

An investor from Iowa that invests in a municipal bond issued by the State of Iowa will pay federal$$but not state$$taxes on the bond$$s coupon payments.

An investor from Iowa that invests in a municipal bond issued by the State of Iowa will pay neither state nor federal taxes on the bond$$s coupon payments.

Which of the following types of bonds has the least$$default risk?

Treasury bonds

Municipal bonds

Corporate bonds

$1.$ Types of bonds

Fixed$-$income securities$$consist of debt instruments and preferred stock. Bonds$$are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date.

The entity that promises to make the interest and maturity payments for a bond issue is called the$.$

Based on the information given in the following statement, answer the questions that follow:

New York City issued a general obligation bond for a canal in $1812.$ It was the first formal debt instrument with a fixed repayment schedule issued by a city.