Buffy, who lives in NY City, is in the 30% federal tax bracket and 6% state income tax bracket. Which of the following bonds that she is considering purchasing has the highest after-tax yield: (1) Treasury bond paying 4.7%. (2) Corporate bond paying 4.9%. (3) Louisiana Municipal bond paying 3.5%.

		a. 1 only.
		b. 2 only.
		c. 3 only.
		d. 1 and 3 are the same and have the highest after-tax yield.