Use the Following Information to Answer the Question(s)below

question 71

Multiple Choice

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 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:

• A)0.6%
• B)1.6%
• C)4.6%
• D)6.0%

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Definitions:

Ethnomethodologists

Researchers who study how people's everyday interactions and practices create and sustain the social order.

Micro Structures

Relates to the patterns of interactions and relationships between individuals or small groups within the larger framework of society.

Macrostructures

Large-scale social structures that influence the organization and behavior of societies.

Ethnomethodology

A sociological perspective focusing on the ways in which individuals make sense of their world, emphasizing the everyday practices and methods people use.