3) a) (10 points) Given the junk bond status of US Steel, the yield to maturity calculation may be too optimistic. Assume that there is a 50% probability that the bonds will return $800 at maturity and a 50% probability that the bonds will return full par value. Calculate the average expected price of the bond based on the debt cost of capital from the table below. Then calculate the bonds expected return based on the average expected price. Be sure to show your calculations. b) (5 points) Explain why the expected return on the US Steel bond does not equal the bonds yield to maturity. c) (5 points) Under what macroeconomic conditions would the credit spread between AAA-rated bonds and B-rated bonds widen