For bonds, assume coupons paid semi-annually, coupon rates and yields quoted with semi-annual compounding, and redeemable at par unless otherwise noted

The reinvestment rate is 4% effective annually for all cashflows. An investor has three options to invest in at time zero:

a. A stock priced at $125 that is paying a dividend of $5 and growing at a rate of 2% per year.

b. A seven-year bond that is priced at $110 and has a coupon rate of 10%.

c. A 30-year monthly amortizing loan of $120 at an interest rate of 6%.

In four years, loan rates are 5%, bond yields are 2%, and the stock is priced at $145 and the investor liquidates all assets at present value. Which investment option provides the highest overall return?