单选题

An investor wants to invest an one-year, single-payment corporate bond and concludes that the probability of default for this one-year, single payment corporate bond is 10.0 percent, and the investor will recover nothing if the corporate defaults due to its bankruptcy. The current risk-free rate of return is 3.0 percent. The minimum yield-to-maturity and minimum default risk premium, respectively , that the investor should demand on the corporate bond are closest to(     )。

【正确答案】 C
【答案解析】

Set X%—minimum default risk premium,10%×(-100%)+90%×(3%+X%)=3%,
X%=11.44%, minimum yield-to-maturity= 11.44%+3%= 14.44%.