Consider a one-year bond that promises a coupon rate of 10% and has a principal (par value) of $1,000. Further assume the bond is currently trading

Consider a one-year bond that promises a coupon rate of 10% and has a principal (par value) of $1,000. Further assume the bond is currently trading for $800. What is the yield to maturity?

37.5

27.5%

31.3%

12.7