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Use the following information to answer the question(s) below. Consider the following information regarding corporate bonds: Rearden Metal has a bond issue outstanding with ten

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Use the following information to answer the question(s) below. Consider the following information regarding corporate bonds: Rearden Metal has a bond issue outstanding with ten 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 Rearden Metal's debt is closest to: A. 6.0% B. 1.6% C. 4.6% D. 0.6%

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