Imagine a time when you have a high income, placing you in the $32$ percent marginal tax bracket. You are interested in investing some money in a bond issue and have three alternatives. The first is a corporate bond with a $6\mathrm{.}4$ percent yield to maturity. The second bond is a Treasury that offers a $5\mathrm{.}7$ percent yield. The third choice is a municipal bond priced at a yield to maturity of $4\mathrm{.}0$ percent. Which bond gives you the highest after$-$tax yield?