A Heights Inc. bonds have a coupon rate of 7%, a yield to maturity of 10%, a face value of $1,000, and mature in 10 years. Which of the following statements is MOST correct?
A. an investor who purchases the bond today will earn a return of 7% if he sells the bond after one year.
B. an investor who purchases the bond today will earn a return of 17% per year if he holds the bond until it matures
C. an investor who purchases the bond today will earn a return of 10% if he sells the bond after one year
D. an investor who purchases the bond today will earn a return of 10% per year if he holds the bond until it matures.