1. Chris Brown has decided that he would like to go back to school after his kids leave home in five years. To save for his education, Chris would like to invest $25,000 in an investment that provides a high return. If his marginal tax rate is 32%, what is Christopher's after-tax rate of return for the following investment options? Qualified dividends are taxed at 15%. Take percentages out to two decimal places.
   1. Corporate bond issued at face value with 5% stated interest rate payable annually. (Effective rate?)
   2. Dividend-paying stock with an annual qualifying dividend equal to 4.75% of her investment. (Effective rate?)
   3. Which should she invest in? (Bond or Stock?)