yields of $9\mathrm{.}432\%.$ Alternatively, long Treasuries are now available at yields of $8\mathrm{.}795\%.$ She has $$100,000$ to invest, and because all the bonds are high$-$quality issues, she wants to select the one that will give her maximum after$-$tax returns.

a$.$ Which one of the four bonds should she buy?

b$.$ Rank the four bonds $($from best to worst$)$ in terms of their taxable equivalent yields.

a$.$ The taxable equivalent yield on the in$-$state municipal bond is $\%.($Round to three decimal places.$)$

The taxable equivalent yield on the out$-$of$-$state municipal bond is $\%.($Round to three decimal places.$)$

The taxable equivalent yield on the corporate bond is $\%.($Round to three decimal places.$)$

The taxable equivalent yield on the Treasury bond is $\%.($Round to three decimal places.$)$

Which one of the $4$ bonds should she buy? $($Select the best choice below.$)$

A$.$ Janice should buy the AA$-$rated out$-$of$-$state bond that has a yield of $6\mathrm{.}984\%$; its higher taxable equivalent yield means it has the highest after$-$tax return.

B$.$ Janice should buy the AA$-$rated in$-$state bond that has a yield of $6\mathrm{.}371\%$; its higher taxable equivalent yield means it has the highest after$-$tax return.

C$.$ Janice should buy the Treasury bond that has a yield of $8\mathrm{.}795\%$; its higher taxable equivalent yield means it has the highest after$-$tax return.

D$.$ Janice should buy the corporate bond that has a yield of $9\mathrm{.}432\%$; its higher taxable equivalent yield means it has the highest after$-$tax return.

b$.$ Rank the $4$ bonds $($from best to worst$)$ in terms of their taxable equivalent yields. $($Select the best choice below.$)$

A$.$ Best In$-$state municipal

B$.$ Best In$-$state municipal

Out$-$of$-$state municipal

Treasury bond

Treasury bond

Worst Corporate bond

C$.$ Best Out$-$of$-$state municipal

Worst Corporate bond

In$-$state municipal

D$.$ Best In$-$state municipal

Corporate bond

Worst Treasury bond

Corporate bond

Worst Treasury bond