BOND VALUATION An investor has two bonds in his portfolio that have a face value of $ $1,000$ and pay an $11\%$ annual coupon $.$ Bond L matures in $12$ years $,$ while Bond S matures in $1$ year $.$ a What will the value of each bond be if the going interest rate is $6\%,8\%,$ and $12\%?$ Assume that only one more interest payment is to be made on Bond S at its maturity and that $12$ more payments are to be made on Bond L$.$ b Why does the longer term bond's price vary more than the price of the shorter term bond when interest rates change $?$