Jake Baldwin is looking for a fixed-income investment. He is considering two bond issues:

a. A Treasury with a yield of 9.46%

b. An in-state municipal bond with a yield of 7.09%

Jake is in the 32% federal tax bracket and the 6% state tax bracket. Which bond would provide him with a higher tax-adjusted yield? The taxable equivalent yield on the Treasury bond is 10.0610.06%. (Round to two decimal places.)