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Please detail what are the value of Rm and Rf on the formula for AAA and BBB. to get BBB Rd why do not consider

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Please detail what are the value of Rm and Rf on the formula for AAA and BBB. to get BBB Rd why do not consider Rf on the second part of the formula? how do you get 0.40 to get YTM on the last part.
Rating Average Default Rate 0.0% 0.1% 0.2% 0.5% 2.2% 5.5% 12.2% Recession Default dit Rate 0.0% 1.0% 3.0% 3.% 8.0% 16.0% 48.0% Average Beta 0.05 0.05 0.05 0.10 0.17 0.26 0.31 Nielson Motors plans to issue 10-year bonds that it believes will have an BBB rating. Suppose AAA bonds with the same maturity have a 3.5% yield. Assume that the market risk premium is 5% and the expected loss rate in the event of default on the bonds is 60%. The yield that these bonds will have to pay during average economic times is closest to: 3.50% 3.75% 4.00% 5.50% Rating Average Default Rate 0.0% 0.1% 0.2% 0.5% 2.2% 5.5% 12.2% Recession Default dit Rate 0.0% 1.0% 3.0% 3.% 8.0% 16.0% 48.0% Average Beta 0.05 0.05 0.05 0.10 0.17 0.26 0.31 Nielson Motors plans to issue 10-year bonds that it believes will have an BBB rating. Suppose AAA bonds with the same maturity have a 3.5% yield. Assume that the market risk premium is 5% and the expected loss rate in the event of default on the bonds is 60%. The yield that these bonds will have to pay during average economic times is closest to: 3.50% 3.75% 4.00% 5.50%

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