Whitlock & Daily Corporation has $350,000 that it wants to invest. It is choosing between Google corporate bonds that yield 8.70 percent, state of Texas municipal bonds that yield 5.72 percent, and AT&T preferred stock with a dividend yield of 6.90 percent. The corporation’s tax rate is 35 percent. Which security would have had the highest after-tax yield using the 2017 tax rules?

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