An investor lives in a state with a 4% 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 9.69%. The second bond is exempt from both state and federal taxes and offers a yield of 7.20%. In which bond should she invest? The after-tax yield of the first bond is %. (Round to two decimal places.)