During the recession in mid-2009, homebuilder KB Home had outstanding 5-year bonds with a yield to maturity of 8.7 % and a BB rating. If corresponding risk-free rates were 3.2 %, and the market risk premium was 4.7 %, estimate the expected return of KB Home's debt using two different methods. How do your results compare?

Joe pays ann to mow his lawn and ann mows vanna's lawn by mistake. vanna peers out her window and sees ann mowing, yet says nothing to ann about her mistake since vanna needs to have her lawn mowed. when ann approaches vanna for payment, vanna refuses, arguing that she never asked ann to mow her lawn. under these circumstances, ann can recover payment from vanna under: