You chose the correct answer.
Here is the calculation:

Tom will lose money in the bond because he pays a premium for it:

$10,200 - $10,000 = $200

Tom will earn 12% interest based on the face value of the bond

$10,000(0.12) = $1,200

The total money Tom will make is

$1,200 - $200 = $1,000

Click to move on to Bond Discount.