Juan was considering purchasing an interest in a tax-exempt bond fund for $100,000, when he discovered that the interest must be included on his state income tax return. The interest rate is 5%. His marginal federal tax rate is 35%, and his marginal state income tax rate is 10%. Juan itemizes his deductions on his federal income tax return. As an alternative, Juan can purchase a state bond (a double-exempt bond) yielding 4.9% interest that is exempt from both federal and state income tax. Which investment would yield the greater after-tax return?