In mid-2012, Ralston Purina had AA-rated, 10-year bonds outstanding with a yield to maturity of 2.25%. a. What is the highest expected return these bonds could have? b. At the time, similar maturity Treasuries had a yield of 1.25%. Could these bonds actually have an expected return equal to your answer in part (a)? c. If you believe Ralston Purina's bonds have 1.4% chance of default per year, and that expected loss rate in the event of default is 59%, what is your estimate of the expected return for these bonds? a. What is the highest expected return these bonds could have? The highest expected return these bonds could have is %. (Round to two decimal places.)