Cooley Company's stock has a beta of 1.40, the risk-free rate is 4.25%, and the expected return on the market is 9.75%. Using the CAPM model, what is the firm's required rate of return? 11.45% 11.95% ??? 10.80% 12.35% Which of the following statements is true? If market interest rates rise, a 10-year bond will fall in value more than a 1-year bond; all else equal. A benefit of a callable bond is the issuer may replace it with a bond that has a higher coupon rate. If interest rates rise, bond prices will rise. For a given change in market interest rates, the prices of higher-coupon bonds change more than the prices of lower-coupon bonds. Which one of the following statements about bonds is NOT true? The required rate of return, or discount rate, for a bond is the market interest rate called the bond's yield to maturity. The value, or price, of any asset is the future value of its cash flows. To compute a bond's price, one needs to calculate the present value of the bond's expected cash flows. The expected future cash flows are estimated using the coupons that the bond will pay and the maturity value to be received