Suppose you're evaluating three alternative MMMF investments, The first fund buys a diversified portfolio of municipal securities from across the country and yields 2.7 percent. The second fund buys only taxable, short-term commercial paper and yields 5,1 percent. The third fund specializes in the municipal debt from the state of New Jersey and yields 2.4 percent. You are a New Jersey resident, your
federal tax bracket is 35 percent, and your state tax bracket is 8 percent. (Assume your state taxes do not affect your federal taxable
income a. Calculate the aftertay vield for each of the alternatives.