An investor has two bonds in his portfolio that have a face value of $1.00 7-5 BOND VALUATION and pay an 11% annual coupon. Bond L matures in 12 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity b. Why does the longer-term bond's price vary more than the price of the shorter-term a. What will the value of each bond be if the going interest rate is 6%, 8%, and 12%? and that 12 more payments are to be made on Bond L bond when interest rates change? hptr 2. Broward Manufacturing recently reported the following information: Net income ROA Interest expense Accounts payable and accruals $1,050,000 $785,000 e income statemen 896 $298,300 Broward's tax rate is 40%. Broward finances with only debt and common equity, so it has no preferred stock, 40% of its total invested capital is debt, while 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Round your answers to two decimal places