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Assume that only one more interent pepment is to be made on Eand 5 at its maturity and that 10 more payments are to be

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Assume that only one more interent pepment is to be made on Eand 5 at its maturity and that 10 more payments are to be made on afond L. a. What will the value of the Fond L be it the going interent rate is 6%7 Round your answer to the nearest cent. What will the value of the Bosd 5 be it the going interest rate is 6% ? Reund your answer to the nearest cent. 3 What will the value of the Bond L. se if the going laterest rate is 9 \$7. Round your answer to the nearest cent: 5 What will the value of the Bond 5 be if the going interest rate is 995 ? Round your ariswer to the nearest cent. 5 What will the value of the Fand t the it the going interest rate is 12% ? Round vour answer to the nearest cent: 4 What will the value of the Bond 5 be th the going interest rate is 1209 Round your answer to the nearest cent. b. Why does the langer-tem band's priee very mare than the price of the shorter-term bond when interest retes change? 1. Long-term bonds have lower reinvestment rate risk than do short-term bonds. 11. The change in price doe to a change in the required rate of return increases as a band's maturity decreases. 11.. Long-term bonds have greater interent rate risk than do shart-term bonds. IV. The change-in price due to a change in the required rate of return decreases as a bond's maturity increases. V. Long-term bonds have iower inturest rate risk than ds short-term bonds

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