An investor lives in a state with a $3\%$ income tax rate. Her federal income tax bracket is $35\%.$ She wants to invest in one of two bonds that are similar in terms of risk $($and both bonds currently sell at par value$).$ The first bond is fully taxable and offers a yield of $10\%.$ The second bond is exempt from both state and federal taxes and offers a yield of $7\%.$ In which bond should she invest?Cc