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

question 58

Multiple Choice

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

• A)3.0%.
• B)3.5%.
• C)4.9%.
• D)5.5%.

---

Definitions:

Welfare Dependency

A situation where individuals or families rely on government welfare benefits as their primary source of income, often criticized for discouraging work effort.

Employed White Men

A demographic group consisting of men who are identified as White (race) and are actively engaged in paid employment.

Black Females

Refers to women of African descent or those who identify as Black, focusing on their unique experiences, identities, and societal positions.

Single Young Black Women

Single young black women refers to unmarried African American females in their youth or early adulthood, focusing on their experiences and challenges in society.