Please answer questions need back as soon as possible

21. In mid-2012, Ralston Purina had AA-rated, 10-year bonds outstanding with a yield to maturity of 1.57%. a. What is the highest expected return these bonds could have? b. At the time, similar maturity Treasuries had a yield of 0.57%. Could these bonds actually have an expected return equal to your answer in part (a)? c. If you believe Ralston Purina's bonds have 0.5% chance of default per year, and that expected loss rate in the event of default is 52%, 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.) 22. During the recession in mid-2009, homebuilder KB Home had outstanding 6-year bonds with a yield to maturity of 8.5% and a BB rating. If corresponding risk-free rates were 3.0%, and the market risk premium was 5.0%, estimate the expected return of KB Home's debt using two different methods. How do your results compare? (Note: the average loss rate for unsecured debt is about 60%. See annual default rates by debt rating here TABLE 12.2 Annual Default Rates by Debt Rating (1983-2011) Rating:____________AAA DEFAULT RATE: AVERAGE 0.0% IN RECESSIONS 0.0% AA _____A_____BBB___BB_____B_____CCC_____CC-C 0.1% 1.0% 0.2% 3.0% 0.5% 3.0% 2.2% 8.0% 5.5% 12.2% 16.0% 48.0% 14.1% 79.0% Source: \"Corporate Defaults and Recovery Rates, 1920-2011,\" Moody's Global Credit Policy, and average debt betas by rating and maturity here TABLE 12.3 Average Debt Betas by Rating and Maturity By Rating________A and above______BBB_______BB_____ B_______ CCC Avg Beta 15 Avg Beta 0.01 0.06 0.07 0.14 Considering the probability of default, the expected return of the bond is _____%. (Round to two decimal places.)