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Assume that only one more interest payment is to be made on Bond S at its maturity and that 18 more payments are to be

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Assume that only one more interest payment is to be made on Bond S at its maturity and that 18 more payments are to be made on Bond L. a. What will the value of the Bond L be if the going interest rate is 4% ? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 4% ? Round your answer to the nearest cent. $ What will the value of the Bond L be if the going interest rate is 10% ? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 10% ? Round your answer to the nearest cent. $ What will the value of the Bond L be if the going interest rate is 11% ? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 11% ? Round your answer to the nearest cent. $ b. Why does the longer-term bond's price vary more than the price of the shorter-term bond when interest rates change? I. Long-term bonds have greater interest rate risk than do short-term bonds. II. The change in price due to a change in the required rate of return decreases as a bond's maturity increases. III. Long-term bonds have lower interest rate risk 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

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