Suppose that a corporate bond has one year to maturity. The bond has a par value of $1,000 and its annual coupon rate is 5%. After evaluating the risk, an investor concludes that the bond has a 20 percent probability of default and payment under default is $500. The current price of the bond is $900. If the investor decides to buy the bond now, what is the expected yield on the bond?

a.4.4%

b.5.7%

c.10.5%

d.16.7%