Suppose you're evaluating three alternative MMMF investments. The first fund buys a diversified portfolio of municipal

securities from across the country and yields $3\mathrm{.}5$ percent. The second fund buys only taxable, short$-$term commercial

paper and yields $6\mathrm{.}1$ percent. The third fund specializes in the municipal debt from the state of New Jersey and yields $3\mathrm{.}8$

percent. Your federal income tax rate is $35$ percent and you are a resident of Texas, which has no state income tax.

a$.$ Calculate the aftertax yield for each of the alternatives.

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to $2$ decimal places.

b$.$ Which of these three MMMFs offers you the highest aftertax yield?

New Jersey Fund

Taxable Fund

Municipal Fund