The required rate of return on new bond financing is estimated as the:

A. Coupon rate on the company's existing debt.

B. The yield to maturity (YTM) on the company's existing debt.

C. The price of the company's existing bonds.

D. The interest rate on a comparable bank loan.

And

The security market line (SML) tells us: A. The return investors should demand for a given level of portfolio risk. B. The return investors should demand for a given level of unsystematic risk. a C. The return investors should demand for a given level of total risk. D. The appropriate required rate of return for a single security which will be held in isolatic