$1$ year.

its maturity and that $18$ more payments are to be made on Bond L$.$ Round your answers to the nearest cent.

b$.$ Why does the longer$-$term bond's price vary more than the price of the shorter$-$term bond when interest rates change?

I. Long$-$term bonds have greater interest rate risk than do short$-$term bonds.

II$.$ The change in price due to a change in the required rate of return decreases as a bond's maturity increases.

III. Long$-$term bonds have lower interest rate risk than do short$-$term bonds.

IV$.$ Long$-$term bonds have lower reinvestment rate risk than do short$-$term bonds.

V$.$ The change in price due to a change in the required rate of return increases as a bond's maturity decreases.