Jim Purchases $10,000 Par Value Bonds with a 10 Percent

Multiple Choice

Jim purchases $10,000 par value bonds with a 10 percent coupon rate and a 7 percent yield to maturity. Jim will hold the bonds until maturity. Thus, he will earn a return of ____ percent.

A) 8
B) 7
C) 10
D) More information is needed to answer this question.