Question 23. Clemson Inc has a bond issue outstanding with 10 years to maturity, a yield to maturity of 8.6%, and a B rating. The corresponding risk-free rate is 3% and the market risk premium is 6%. assuming a normal economy, the expected return on Clemsons debt is closest to:

A. 0.6%

B. 1.6%

C. 4.6%

D. 6.0%

E. 6.5%