ABC Corp. has issued zero$-$coupon corporate bonds with a three$-$year maturity. Each bond has a face value of $$100.$ Investors believe there is a $10\%$ chance that ABC Corp. will default on these bonds. If ABC does

default, investors expect to receive only $60$ cents per dollar they are owed. Suppose one year later, the company defaults, then compare the realized return with the YTM investors used to value the bonds when

they were issued.

A$.$ realized return $>$ YTM

B$.$ realized return $$ YTM

C$.$ realized return $=$ YTM