An investor has two bonds in his portfolio that harve a face value af 51,000 and pay a 12 annall coupon. 50ndL mabres in 19 years, whie Bond 5 matares in 1 year; 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 wesen interest rates change? 1. Long term bonds have areater interest rate risk than oo shert-tem bonds. It. The change in price due to a change in the requied rate of retum Gecreases as a band's maturity increases. If. Long-tem bonds have lower interest rate risk than do short-term bondt. W. Long-term bonds have lower reinvestment rate risk than do short-term bends. V. The change in peice due to a change in the required rate of returs increases as a bend's matunty decreases