a. What wal the value of the Bond L. be if the going interest rate is 7%,8%, and 13% ? Assume that only one more interest payment is to be made on Bond 5 at its moturity and that 20 more payments are to be made on Bond L. Round your answers to the nearest cent. b. Why does the longeraterm bend's price vary more than the price of the sharter-term bond when interest rates change? 1. Leng-term bonds have greater interest rate risk than do short-term bonds. If. The change in price due to a change in the required rate of teturn decreases as a bond's maturity increases: III. Long-term bonds have tower interest rate risk than do short-term bonds. W. Lang-term bonds have lower reinvestment hite risk than do shart-term bonds. V. The change in price due to a change in the required rate of return increases as a bond's maturity decreases