#11 (15 points -- 5 points for each question) Answer each of the three questions below on this worksheet. You may use bullet points or sentences; no more than four sentences/bullet points per answer. a. Why are longer maturity and lower coupon bonds more sensitive to changes in the interest rate than shorter maturity or higher coupon bonds? b. Why not use earnings vs. free cash flows to find the value of a project or company? Why use incremental cash flows? c. Why is the CAPM determined return considered to be more accurate than the return determined by standard deviation?