a. What will the value of the Bond L be if the going interest rate is 5%,7%, and 11% ? Assume that only one more interest payment is to be made on Bo at its maturity and that 17 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 shortenterm bond when interest rates change? 1. Long-term bonds have greater interest rate isk than do short-term bonde: 1I. The change in price due to a change in the required rate of return decreases as a bond's maturity increases, II. Long-term bonds have lower interest rate risk than do short-ferm 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 bonif's maturity decreases