An investor has two bonds in his portfolio that have a foce value of $1,000 and pay a 13% annual coupon. Bond L matures in 10 years, while Bond S matures in 1 year. -a. What will the value of the Bond L be if the going interest rate is 7%,9%, and 14% ? Assume that only one more interest payment is to be made on Bond 5 at its maturity and that 10 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 sharter-term bond when interest rates change? 1. The change in price due to a change in the required rate of return increases as a bond's maturity decreases. II. Long-term bonds have greater interest rate risk than do short-term bonds. III. The change in price due to a change in the required rate of return decreases as a bond's maturity increases: IV, Long-term bonds have lower interest rete risk than do short-term bonds. V. Long-term bonds have lower reimestment rate risk than do short-term bonds