Frank Costanza has $25,000 burning a hole in his pocket. He's trying to decide between three different investments:
A money market account that pays 5% interest annually
Festivus stock that pays qualified dividends of 4% but has limited growth potential
A local municipal bond that pays 3% in non-taxable interest annually
Frank's ordinary income tax rate is 32% which puts him in the 15% tax bracket for capital gains. Which investment should Frank choose?
a) Money market account
b) Festivus stock
c) Local municipal bond
d) The investment with the highest return regardless of tax implications