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in mid-2012, Ralston Purinaad Aaled, 10 year bonds outstanding with a yield to many of 202% What is the highest expected return these bonds could

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in mid-2012, Ralston Purinaad Aaled, 10 year bonds outstanding with a yield to many of 202% What is the highest expected return these bonds could have b. At the time, similar maturity Treasures had a yield of 1025 Could these bonds actually have an expected retum equal to your answer in partial cl you believe Ralston Pune bonds have 13% chance of default per year, and that expected foss rate in the event of defauti 50%what is your state of the expected return for these bonds? a. What is the highest expected retum these bonds could have? The highest expected motum these bonds could have list (Round to two decimal placet) b. At the time, similar matunty Tremuries had a yok of 1,02% Could these bond actually have an expected retum equal to your answer in part (ay (Select the best choice telow) Oh No, the bands ure rak.ton, the expected retum equals the risk toote, and they are not link free the expected return is less than the yield OB Yesif the bonds wentky enough, that is if the probability of default is high enough OC Yes the yield to matunty is the maximum expected return you can expect OD Yes bemersons in on A and are true e you beleve Kaluton Portes bonde neve 13% chance of detust per year, and that expected lots rate in the event of defauit in 59%, what is your stimate of the expected return for these bonda? The patented expected rotum for these bonds will be x Round to two decimal places)

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