Question 8 Which one of the statements below is true?

a) The yield to maturity of a coupon bond changes whenever the bonds price changes.

b) The risk-free rate is always approximated with the yield to maturity of 30-year bonds.

c) The market risk premium is usually a negative number.

d) The CAPM is the only model that can be used to estimate a companys cost of equity.

e) The risk-free rate captures the return required for bearing risk.