An investor lives in a state with a 5% 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 parvalue). The first bond is fully taxable and offers a yield of 9.32%. The second bond is exempt from both state and federal taxes and offers a yield of 6.70%. In which bond should sheinvest?

Theafter-tax yield of the first bond is ______%

Theafter-tax yield of the second bond is ___%