Harper is considering three alternative investments of $10,000. Assume that the taxpayer is in the 28% marginal tax bracket for ordinary income and 15% for qualifying capital gains in all tax years. The selected investment will be liquidated at the end of five years. The alternatives are:
• A taxable corporate bond yielding 5% before tax, and the interest can be reinvested at 5% before tax.
• A Series EE bond that will have a maturity value of $12,200 (a 4% before-tax rate of return).
• Land that will increase in value?