Wyatt Oil has a bond issue outstanding with seven years to maturity, a yield to maturity of 7.0%, and a BBB rating The bondholders' expected loss rate in the event of default is 70% You are also given the following information for corporate bonds Assuming the economy is in normal conditions, the expected return on Wyatt O's debt is closest Rating AMA M A BBB 88 B Average Default Rate 0.0% 0.1% 0.2% 0.5% 2.2% 5.5% $2.2% Recession Default Rale t 0.0% 1.0% 3.0% 3.0% 8.0% 16.0% 480% Average Beta 005 0.05 0.05 0.10 017 026 0.31 CA8350 O 86.770 15700 886050