What type of bond is backed by the full faith and credit of the issuer, which has the power to tax?

The type of bond that is backed by the full faith and credit of the issuer, who has the power to tax, is known as general obligation bonds. These bonds are typically issued by municipalities, which means they are often used to fund public projects such as schools, roads, and parks. The key feature of general obligation bonds is that they do not have a specific revenue stream tied to their repayment. Instead, they rely on the issuer's ability to collect taxes to meet their debt obligations. This backing provides additional security to investors, as they have confidence that the issuer will use its taxing power to ensure that bondholders are paid.

Revenue bonds, in contrast, are repaid from the revenues generated by a specific project, which means they do not have the same level of security as general obligation bonds. Corporate bonds are issued by companies and are backed by the creditworthiness of the corporation, rather than a government entity. Municipal bonds is a broader category that includes both general obligation and revenue bonds, but in this case, the specific characteristic being asked about points directly to general obligation bonds.