Q4. Consider the following information regarding corporate bonds: Yellow Owl plans to issue 10-year bonds that it believes will have a 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 a recession is closest to: a. 3.50% b. 3.75% c. 4.00% d. 5.55%