An investor has two bonds in his portfolio that have a face value of $1,000 and poy a 13$ annual coupon. Bond L matures in 15 years, while Bond 5 matures in 1 year. a. What wil the value of the Bond L be if the going interest rate is 7%,94, and 14%. Assume that only one more interest payment is to be made on Bond S at its maturity and that 15 more peyments are to be made on fond L. Round vour answers to the nearest cent. b. Why does the lenger-term bonds price vary more than the price of the shortef-term bond when interest rates change? I. ting-term bonds have grester imerest rate risk than do shert-term bonds. II. The change in price due to a change in the required rate of return decreases as a bond's maturity increases. 111. Long-term bonds have lower interest rate rikk than do short-term bonds. IV. Long term bonds have lower reinvestment rate risk than do short-term bonds. v. The change in price due to a change in the required rate of return increases as a bond's maturity decreases