Consider the following information regarding corporate bonds Rating 21% 0.0% 0.0% 0.2% 0.4% 5.2% 9.9% Average Default Rate 1.0% 0.0% 3.0% 43.0% Recession Default Rate 3.0% 8.0% 16.0% Average Beta 0.05 0.05 0.05 0.17 0.26 0.31 Rearden Metal has a bond issue outstanding with ten years to maturity, a yield to maturity of 8.6%, and a B rating. The corresponding risk-free rate is 3% and the market risk premium is 6%. Assuming a normal economy, the expected return on Rearden Metal's debt is closest to 4.6% 0.6% O 1.6% 6.0%