Question 16) Lisa, who lives in Georgia, is in the 32% federal tax bracket and 5% state income tax bracket. Which of the following bonds that she is considering purchasing has the highest after-tax yield (assume she is not subject to the federal 3.8% Net Investment Income Tax)?

Multiple choice answers) Please answer and Explain!

a) California Municipal bond paying 2.4%.

b) Treasury bond paying 3.3%.

c) Corporate bond paying 3.7%.

d) Louisiana Municipal bond paying 2.6%.