An investor is considering the purchase of a high-yield corporate bond with a coupon rate of 10% and 9 years remaining to maturity. The price of the bond is $95.7420 and the YTM is 10.75%. Assume the Treasury yield curve is flat at 7.5% and that the credit spread for this issuer is 325 bps for all maturities. What is the 1-year total return on an effective basis? Assume: The reinvestment rate is 5% At the horizon date, the Treasury yield curve does not change and therefore remains flat at 7.5% At the horizon date, the credit spread for this issuer declines to 200 bps for all maturities. 8.58% 8.95% 17.90% 17.17%