Zevo Corp. 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 10% if he sells the bond after one year.

b.

An investor who purchases the bond today will earn a return of 7% if he sells the bond after one year.

c.

An investor who purchases the bond today will earn a return of 17% per year if he holds the bond until it matures.

d.

An investor who purchases the bond today will earn a return of 10% per year if he holds the bond until it matures and interest rates remain the same.