The Omega Corporation has some excess cash that 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 5 percent yield; (b) corporate bonds at a 8 percent yield; or (c) preferred stock at an 6 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. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

		Aftertax yields
a.	Treasury bonds		%
b.	Corporate bonds		%
c.	Preferred stock		%