Suppose youre evaluating three alternative MMMF investments. The first fund buys a diversified portfolio of municipal securities from across the country and yields 2.8 percent. The second fund buys only taxable, short-term commercial paper and yields 5.1 percent. The third fund specializes in the municipal debt from the state of New Jersey and yields 2.5 percent. If you are a New Jersey resident, your federal tax bracket is 35 percent, and your state tax bracket is 8 percent.

1.	Calculate the aftertax yield for each of the alternatives.(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

	Aftertax Yield
Municipal fund	%
Taxable fund	%
New Jersey municipal fund	%

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