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4. The Select Company has two bond issues outstanding. Both bonds pay $80 annual interest, plus $1,000 at maturity. Bond L-Series has a remaining maturity

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4. The Select Company has two bond issues outstanding. Both bonds pay $80 annual interest, plus $1,000 at maturity. Bond L-Series has a remaining maturity of 15 years, and Bond S Series a remaining maturity of 1 year. a) What will be the value of each of these bonds when the going rate of interest is (1) 4% and (2) 14% ? b) What is the percentage change in the value of each bond when the interest rate increases from 4% to 14% ? c) Why is there a greater percentage change for the longer-term bond L series

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