Choose options or fill in the boxes with appropriate words/figures following the instructions.

1. If current trades of 5-year AA bonds show that investors expect a yield of 1.2%, the price of a 10-year AA bond with a coupon of 0.5% issued 5 years ago will be [more than / equal to / less than] 100.00. And when the price of a firm's shares moves 5% when the whole market moves 2%, it is said that the shares of the firm has a beta of ___________. In such a situation, the firm should have [higher / indeterminate / lower ] costs of equity than a firm whose share price would move at the same rate as the whole market.

is it 1) more than 2) 2.5 3) higher ??

if it's not, correct the answer, please. Thank you