Compute the promised yield to maturity and expected return to maturity

Compute the promised yield to maturity and expected return to maturity on a default-risky 3-year pure-discount corporate bond that has a current price of $543 . With a probability of 0.6, the issuer will repay the principal of $1,000 at maturity.

However, the probability is 0.4 that the issuer will default, in which case bondholders will receive only $200 per bond.
Promised Exp. Ret.
Yield to Mat.
a. 22.57% 13.06%
b. 22.57% 7.79%
c. 13.06% 13.06%
d. 13.06% 7.79%
FORMULAS: y = [X/P]1/T –1; rD = [E(PAY)/P]1/T –1, where E(PAY)= p[X] + (1-p)[X’]

ANSWER

B