An invester has two bonds in his portfollo that have a face value of $1,000 and pay an 11% annual coupon. Bond L matures in 11 years, while Bond 5 matures in 1 year. a. What wil the value of the Bond L be the going interest rate is 6%, 8%, and 12% ? Assume that coly one more interest payment is to be made on Bond S at its maturity and that 11 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 shorter-term bond when interest rates change? 1. Long-term bands have greater interest rate risk than do short-term bonds. 11. The change in price due to a change in the required rate of return decreases as a bond's maturity increases. III. Long-term bonds have lawer interest rate risk than do short-term bonds. IV. Long-term bonds have lower reinvestment rate nsk than do short-term bonds. V. The change in price due to a change in the required rate of return increases as a bono's maturity decreases