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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 maturty, a yield to maturity of 8.6%, and a B rating. The boncholders expected loss rate in the event of default is 50%. Assuming a normal oconomy the expected return on Rearden Metar's debt is closest to: A. 4.6% B. 16% C. 0.6% D. 59%

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