Oxford Inc. has outstanding 5-year bonds with a yield to maturity of 6%, a coupon rate of 10%, and a CCC rating. If the estimated debt beta of Oxford Inc. is 0.26, corresponding risk-free rates are 1%, and the market risk premium 5%, what is the expected return of Oxford Inc.s debt?

A. 2.3%

B.

10%

C.

5%

D.

6%

E.

1%