In mid-2012. Ralston Purina had AA rated, 10-year bonds outstanding with a yield to maturity of 1.60% a. What is the highest expected return these bonds could have? b. At the time, similar maturity Treasures had a yield of 0.66%. Could these bonds actually have an expected return equal to your answer in part (a)? c. If you believe Ralston Purina's bonds have 0.7% chance of default per year, and that expected loss rate in the event of default is 58%, what is your estimate of the expected return for these bonds? -CEED 3. What is the highest expected return these songs could have The nighest expected return these bands could have s 1.06% (Round to two decimal places.) b. At the time, similar matunty Treasures had a yield of 0.06%. Could these bonds actually have an expected ratum equal to your answer in part(a)? (Select the best choice below) A. No, the bonds are risk-free, the expected retum equals the risk-fron rate, and if they are not risk-fron the expected rotum is less than the yield. OB. Yes, the yield to maturity is the maximum expected return you can expect. OG Yes, if the bonds are risky enough, that is if the probability of default is high enough OD Yes, because the reasons given in both A and B. are true c. If you believe Ralston Purina's bonds have 0.7% chance of default per year, and that expected loss rate in the event of default in 58%, what is your estimate of the expected return for these