Bond Valuation and Interest Rate Risk The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years, and Bond Shas maturity of 1 year 1. what will be the value of each of these bonds when the going rate of interest is 4% Assume that there is only one more interest payment to be made on Band S. Do not round intermediate calculations. Round your answers to the nearest cent. Bond : 5 Hond 5:5 2. What will be the value of each of these bonds when the going rate of interest is 89. Assume that there is only one more interest payment to be made on Bond S. Do not round intermediate calculations. Round your answers to the nearest cent. Bond LS Band SES What will be the value of each of these bonds when the going rate of interest is 15% Assume that there is only one more interest payment to be made on Bond Do not found intermediate calculations. Round your answers to the nearest cont. Bond : Bond S: 5 b. Why does the longer term (15 year) bond fluctuate more when interest rates change than does the shorter-term bond (1 year) 1. Longer-term bonds have less reinvestment rate risk than shorter term bonds II. Longer term bonds have more interest rate risk than shorter term bonds III. Longer term bonds have less interest rate risk than shorter term bonds Select