An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 9% anntaal coupon. Bond L matures in 18 years, while Bond 5 matures in 1 year. a. What wit the value of the Band t, be if the going interest rate is 6%, 7%, and 10% ? Assume that only one more interest payment is to be made on 80nd.5 at its maturity and that 18 more payments are to be made on bond L Round your answers to the nearest cent. b. Why does the longenterm bond's price vary mare then the price of the shorter-term bond when intereat rates change? 1. Long-term bonds fuve lower interest rate risk than do short-term bonds. 11. Long-term bonds have lower reinvestment rate risk than do short-term bands. III. The change in price due to a change in the required rate of return increases as a bonds maturity decreases. IV. Long-term bonds have greater interest rate risk than do short-term bonds. V. The chunge in price due to a change in the required rate of return decreases as a bond's maturity increases