An investar has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual coupon. Bond L maturea in 11 years, while Bond 5 matures in 1 year. Assume that only one mote interest payment is to be mase on fond S at its maturify and that 11 more payments are to be made on bond L. a: What will the value of the Bond L be if the going interest rate is 4$4 ? Round your answer to the neacest cent. 3. What will the value of the Bond 5 be if the going interest rate is 4 \%? Round your anserer to the nearest cent. 5 What will the value of the Bond L be if the going interest rate is 9% ? Roand your ansmer to the neareit cent. s. What will the value of the Bond 5 be if the going interest rate is 94 ? Round your answer to the nearest cent. $ What will the value of the Bond L be f the going interest rats is 14 s? Round ybur answer to the nearest cent. 3 What will the value of the Bond S be if the going inferest rate is 19%7. Round your avswer to the nearest cent. 5 b. Why does the longer-term bond's pnce vary more than the price of the shortet-tarm boed when interest ntes change? 1. The change in price due to a change in the required race of return increases as a bonds maturity decreases. 11. Long-term bondi have greater interest rate nisk than do short-term botids. III. The chenge in price due to a change in the requined rate of retum decreases as a bones maturity increases. IV. Long-term bonds have lower interest rate risk than ds thort-lerms behds. V. Loogterm bonds have lower reinvestenent rate nisk than do shart-term bondi