The Omega Corporation has some excess cash it would like to invest in marketable securities for a long$-$term hold. Its Vice$-$President of Finance is considering three investments: $($a$)$ Treasury bonds at a $6$ percent yield; $($b$)$ corporate bonds at a $12$ percent yield; or $($c$)$ preferred stock at an $8$ percent yield. Omega Corporation is in a $40$ percent tax bracket and the tax rate on dividends is $10$ percent.

a$-1.$ Compute the aftertax yields for the three investment options.

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

a$-2.$ Which one of the three investments should she select based on the aftertax yields?

multiple choice

Preferred stock

Treasury bonds

Corporate bond