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[bastion 3 Consider the following information regarding corporate bonds: Rearden Metal has a bond issue outstanding with ten years to matun'ty, a yield to maturity

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[bastion 3 Consider the following information regarding corporate bonds: Rearden Metal has a bond issue outstanding with ten years to matun'ty, a yield to maturity of 8.6%, and a B rating. The bondholders expected loss rate in the event of default is 50%. Assuming a normal economy the expected return on Rearden Metal's debt is closest to: 0.6% 1.6% 4.6% 6.0% "$131

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