Problem $31-38$ After$-$tax yields

Suppose you are a wealthy individual paying $35\%$ tax on income. What is the expected after$-$tax yield on each of the following

investments?

a$.$ A municipal note yielding $7\mathrm{.}6\%$ pretax.

b$.$ A Treasury bill yielding $11\mathrm{.}6\%$ pretax.

c$.$ A floating$-$rate preferred stock yielding $8\mathrm{.}1\%$ pretax.

How would your answer change if the investor is a corporation paying tax at $35\%?$

Note: For all requirements, do not round intermediate calculations. Round your answers to $4$ decimal places.

Answer is complete but not entirely correct.