LO$\mathrm{.}1,2,5$ Harper is considering three alternative investments of $$10,000.$ Assume

that the taxpayer is in the $24\%$ 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 $5\mathrm{.}333\%$ before tax, and the interest can be

reinvested at $5\mathrm{.}333\%$ 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.

The gain on the land is classified and taxed as a long$-$term capital gain. The income

from the bonds is taxed as ordinary income. How much must the land increase in

value to yield a greater after$-$tax return than either of the bonds? For this analysis,

ignore the effect of property taxes on the land.

Use the future value tables in Appendix E as needed for your calculations and com$-$

parisons. Present your answers using spreadsheet software such as Microsoft Excel.M