A zero-coupon bond has a beta of 0.15 and promises to pay $5,000 next year with a probability of 96%, $1,000 with a probability of 2%, and there is a 2% probability of total default. One -year Treasury securities are yielding 4%, and the expected return on the market is 10%.

Refer to the information above. What is the promised rate of return on this bond investment? Round your answer to the nearest tenth of a percent.

		A) 6.0%
		B) 5.4%
		C) 9.3%
		D) 8.8%