In mid$-2022,$ Nestle Holdings had AA$-$rated, $10-$year bonds outstanding with a yield to maturity of $4\mathrm{.}14\%.$

a$.$ What is the highest expected return these bonds could have?

b$.$ At the time, similar maturity Treasuries had a yield of $0\mathrm{.}84\%.$ Could these bonds actually have an expected return equal to your answer in part $($a$)?$

c$.$ If you believe Nestle Holdings's bonds have $0\mathrm{.}9\%$ chance of default per year, and that expected loss rate in the event of default is $53\%,$ what is your estimate of the expected return for

these bonds?