Consider the following information regarding corporate bonds: Rating Average Default Rate | 0.0% | 0.0% | 0.2% | 0.4% | 2.1% | 5.2% | 9.9% Recession Default Rate | 0.0% | 1.0% | 3.0% | 3.0% | 8.0% | 16.0% | 43.0% Average Beta 0.05 O.05 0.05 1.0 0.170.26 0.31 Rearden Metal has a bond issue outstanding with ten years to maturity, a yield to maturity of 8.6%, and a B rating. The bondholders expected loss rate in the event of default is 50%. Assuming a normal economy the expected return on Rearden Metal's debt is closest to: 0.6% 4.6% 1.6%