The City of New York issues new bonds to finance a new hospital from the need arising out of the current health crisis. How will investors in New York State holding these bonds will be subjected to their earnings from a tax perspective?

Group of answer choices

The earnings from these bonds will be subjected to state and local taxes only.

The earnings from these bonds will be subjected to federal taxes only.

The earnings from these bonds will not be subjected to any taxes at all

The earnings from these bonds will be subjected to federal, state and local taxes.