1. Sara Beasley has decided that she would like to go back to school after her kids leave home in five years. To save for her education, Sara would like to invest $25,000 in an investment that provides a high return. If her marginal tax rate is 27%, what is Sara's after-tax rate of return for the following investment options? Qualified dividends are taxed at 15%.
   1. Corporate bond issued at face value with 7% stated interest rate payable annually.
   2. Dividend-paying stock with an annual qualifying dividend equal to 5.5% of her investment.
   3. Which should she invest in?