Activity Information 159 PM EOT 7-3 Band Valuation e Bond valuation and pay a 8% annual coupon. Bond L matures in 15 years, while Bond S matures in 1 year investor has two bonds in his portfolo that both have a face vaue of $1,000 Assume that only one more interest payment is to be made on Bond S at its maturity and that 15 more payments are to be made on Band L a.what wa re we ofthe Bond L betthe going intrest rat is 6%, Round yor-er to the meeee mat wil the value of the Bond S be tue going interest rate is 6%7 Rond your anser to the nearest one. what wa the value ofmelod L be tre going nterest rate is 10%, Round w amer to the nearest cent what wa the valt e' the Bond S be , the gong i terest rate is 10%? Rond your answer to the nearest ent. what wa the value ofthe ord L be?the gong interest rate is 13%, Round your arower to the nearest cere. what wilthe vtue ofthe Bond S be the going interest 'ste is IN67 Round your answer to the near-cere b. Why does the longer-serm bond's price vary more than the price of the shorter-term bond when interest rates change? L. The change in price due to a change in the equired rate of retun decreaues as a bond's naturity increases Long-term bonds have The change in price . Long-tem bonds have greater ieterest rate risk thien da short-term banas 3 8