$12-03$: An investor in the $35\%$ tax bracket is trying to decide which of two bonds to purchase. One is a corporate bond carrying an $9\%$ coupon and selling at par. The other is a municipal bond with a $5(1)/(2)\%$ coupon, and it$,$ too, sells at par. Assuming all other relevant factors are equal, which bond should the investor select? Do not round intermediate calculations. Round your answer to two decimal places.

Answer: The equivalent tax yield of the municipal bond is $[$Blank$]\%.$ Therefore, a $[$blank$]($corporate or municiple$)$ bond is better.wo decimal places.