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.