This only does either BOLD or ITALIC...

import java.awt.event.*;
import javax.swing.*;
import java.awt.*;
import java.awt.event.*;
import java.applet.*;



public class CheckRadioTest extends JApplet implements ItemListener
{
    //private String CurrentComboName = "Select One";

    private JLabel headingLabel;
    private int currentStyle = Font.PLAIN; //private int intBold = Font.PLAIN; //private int intItalic = Font.PLAIN;
    private Color currentColor = Color.black;
    private JCheckBox cbBold , cbItalic ;
    private JRadioButton  rbRed , rbGreen , rbBlue; // mga Item... dili Action... ang button usa ra siya... Itemssssssssssssssssssssssss .. mao nang ItemEvent
    private ButtonGroup ColorSelectGroup;
    public static String[] words = {"hohoho" , "hahaha" , "hihihi" , "hehehe"};
    public static JComboBox myfirstcombobox = new JComboBox(words);
    private JButton buttonAppend,buttonExit;
    private ButtonEventHandler eventHandler;

    public void init()
    {
        Container c = getContentPane();
        c.setLayout(null);


        headingLabel = new JLabel ("Default Text" , SwingConstants.CENTER);
        headingLabel.setFont(new Font("Courier", Font.PLAIN, 12));
        cbBold = new JCheckBox("Bold");
        cbItalic = new JCheckBox("Italic");
        rbRed = new JRadioButton("Red");
        rbGreen = new JRadioButton("Green");
        rbBlue = new JRadioButton("Blue");


        //BUTTONS EVENT HANDLER
         eventHandler = new ButtonEventHandler();


        //EXIT BUTTON
        buttonExit = new JButton("Change Text");
        buttonExit.addActionListener(eventHandler);

        cbBold.setSize(100,30);
        cbItalic.setSize(100,30);
        rbRed.setSize(100,10);
        rbGreen.setSize(100,10);
        rbBlue.setSize(100,10);
        myfirstcombobox.setSize(100,30);
        headingLabel.setSize(130,40);
        buttonExit.setSize(130,30);


        cbBold.setLocation(100,85);
        cbItalic.setLocation(100,125);
        rbRed.setLocation(310,60);
        rbGreen.setLocation(310,100);
        rbBlue.setLocation(310,150);
        myfirstcombobox.setLocation(20,10);
        headingLabel.setLocation(125,10);
        buttonExit.setLocation(20,200);



        cbBold.addItemListener(this);
        cbItalic.addItemListener(this);
        rbRed.addItemListener(this);
        rbGreen.addItemListener(this);
        rbBlue.addItemListener(this);
        myfirstcombobox.addItemListener(this);


        c.add(cbBold);
        c.add(cbItalic);
        c.add(rbRed);
        c.add(rbGreen);
        c.add(rbBlue);
        c.add(myfirstcombobox);
        c.add(headingLabel);
        c.add(buttonExit);

        ColorSelectGroup = new ButtonGroup();
        ColorSelectGroup.add(rbRed);
        ColorSelectGroup.add(rbGreen);
        ColorSelectGroup.add(rbBlue);

        //NameComboBox = new JComboBox(Name);
    }
        public void paint(Graphics g)
        {
            super.paint(g);
            g.setColor(Color.orange);
            g.drawRoundRect(75, 50 , 125 ,140 , 10 , 24); // x , y, width, length , height , thickness
            g.drawRoundRect(275 , 50 ,125 , 140 , 10 , 24);
            g.setColor(currentColor);
            g.setFont(new Font("Times New Roman", Font.PLAIN, 15));
            g.drawString("super.paint(g)" ,300, 30);


        }



private class ButtonEventHandler implements ActionListener
{

    public void actionPerformed (ActionEvent a)
    {

        String str = myfirstcombobox.getSelectedItem().toString();

        headingLabel.setText(str);

    }

}

    public void itemStateChanged (ItemEvent e)
    {



            if(e.getSource() == cbBold)
            {
                if(e.getStateChange() == ItemEvent.SELECTED)
                {currentStyle = Font.BOLD; //intBold = Font.BOLD;
                 headingLabel.setFont(new Font("Courier", Font.BOLD, 12));}


                if(e.getStateChange() == ItemEvent.DESELECTED)
                    {currentStyle = Font.PLAIN; //intBold = Font.PLAIN;
                    headingLabel.setFont(new Font("Courier", Font.PLAIN, 12));
                            repaint();}
            }


            if(e.getSource() == cbItalic)
            {
                if(e.getStateChange() == ItemEvent.SELECTED)
                    {currentStyle = Font.ITALIC; //intItalic = Font.Italic;
                    headingLabel.setFont(new Font("Courier", Font.ITALIC, 12));
                    repaint();}

                if(e.getStateChange() == ItemEvent.DESELECTED)
                    {currentStyle = Font.PLAIN; //intItalic = Font.PLAIN;
                    headingLabel.setFont(new Font("Courier", Font.PLAIN, 12));
                    repaint();}

            }



            if(e.getSource() == rbRed)
                {
                    currentColor = Color.red;
                    headingLabel.setForeground(Color.red);
                    repaint();
                }

            else if(e.getSource() == rbGreen)
                {
                    currentColor = Color.green;
                    headingLabel.setForeground(Color.green);
                    repaint();

                }

            else if(e.getSource() == rbBlue)
                {
                    currentColor = Color.blue;
                    headingLabel.setForeground(Color.blue);
                        repaint();

                }




             //if (e.getSource() == NameComboBox)
             //Current = Name [NameComboBox.index()];
        }




}

Read the API doc for theFont class. It tells you how to have more than one style in a font by Oring the styles used in the constructor..

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