An investor has two bonds in his portfollo that have a face value of $1,000 and pay an 11% annual coupon. Bond L matures in 15 years, while Bond 5 matures in 1 yeae a. What will the value of the Bond L be if the going interest rate is 5%, 7%, and 12% Assume that only one more interest payment is to be made on Bond 5 at its maturity and that 15 more payments are to be made on Bond L Round your answers to the nearest cent. b. Why does the longeriterm bonds price vary more than the price of the shorter-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 retumn decresues as a bonds maturily increases. IV. Long-term bonds have lower interest rate risk than do short-term bonds. v. Long-term bonds have lower reimvestment rate risk than do short-term bonds