Use the following information to answer the question(s) below. Consider the following information regarding corporate bonds:

Rating	AAA	AA	A	BBB	BB	B	CCC
Average Default Rate	0.0%	0.1%	0.2%	0.5%	2.2%	5.5%	12.2%
Recession Default Rate	0.0%	1.0%	3.0%	3.0%	8.0%	16.0%	48.0%
Average Beta	0.05	0.05	0.05	0.10	0.17	0.26	0.31

Wyatt Oil has a bond issue outstanding with seven years to maturity, a yield to maturity of 7.0%, and a BBB rating. The corresponding risk-free rate is 3% and the market risk premium is 5%. Assuming a normal economy, the expected return on Wyatt Oil's debt is closest to:

		5.5%.
		3.0%.
		4.9%.
		3.5%.