Sara Nixon is looking for a fixed-income investment. She is considering two bond issues:

a. A Treasury with a yield of 10.78%

b. An in-state municipal bond with a yield of 8.21%

Sara is in the 33% federal tax bracket and the 8% state tax bracket. Which bond would provide Sara with a higher tax-adjusted yield?

The taxable equivalent yield on the Treasury bond is_%.(Round to two decimal places.)