In mid-2012. Ralston Purina had AM-resed, 10-year bonds outstanding with a yivis to maturity of 1,86\%. a. What is the highest expected teturn these bonds could have? b. A: the time, similar maturity Treasuries had a yeld of 0,88%. Could these bonds actually have an expected ieturn equal to your anowor in part (a)? c. If you believe Rolston Purina's bonds have 1.2% chance of dofault per year, and that expected loss rate in the event of default is 40%, what is your estimate of the expecred return for these bonds? a. What is the highest expected return shese bonds could have? The highest expeced return these bonds could have is 18. (Round to two decimal places) b. At the time, similar maturiy Troasuries had a yield of 0.86%. Could these bonds actually have an expected return equal to your answer in part (a)? (Select the best chaice belo B. Yes, If the bonds are risky enough, that is if the probabilyy of default is high enough. C. Yes, the yidd to maturity is the maximum expected retum you can expect. D. Yes, becouse the reasons given in both A, and B. are true. c. If you believe Ratston Purna's bonds have 1.2% chance of defaut per year, and that expected loas rate in the event of defanit is 40%, what is your estirnate of the expected return for these bonds? The estimated expected return for these bonds will be W. (Round to two decimal places:)