Wyatt Oul has a bond issue outstanding with seven years to maturity a yueld to maturity of 7.0% and a BBB rating. The bondholder's expected lose rate in thecevent of defaukt is 70%. Assuminf a normal economy the expected return on Wyatt Oil's debt is clisest to:

a). 3.5%

b). 4.9%

c). 3.0%

d). 6.7%