Consider the following information regarding corporate bonds:[table] Rating | AAA | AA | A | BBB | BB | B | CCC 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 | 0.05 | 0.05 | 0.10 | 0.17 | 0.26 | 0.31 [/table] Perpetual Motors plans to issue 10-year bonds that it believes will have a BBB rating. Suppose AAA bonds with the same maturity have a 2% yield. Assume that the market risk premium is 5% and the expected loss rate in the event of default on the bonds is 65%. The yield that these bonds will have to pay during average economic times is closest to:单项选择题

A

3.50%

B

2.50%

C

4.00%

D

4.50%

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