. In the event of default, the recovery rate of which of the following bonds would most likely the highest? a. Senior unsecured debt b. Second Lien Loan c. Senior Subordinated debt 18. Suppose the three-year spot rate is 4% and the four-year spot rate is 5%, what is the syy implied forward rate? a. 3.35% b. 6.43% C. 8.05% 19. Assume the probability of default on the bond is 10% and the average recovery rate, if defaulted, is 60%. Calculate the expected loss: a. 10% b. 6% C. 4% 20. Which of the following is not one of the resources of bond return? a. Receipt of coupon payment b. Reinvestment of the coupon payment C. Return on the carry value of the bond