can you answer b

n investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual coupon. Bond Lmatures in 15 years, while Bond 5 matures in year. 3. What will the value of the Bond L be if the going interest rate is 7%,9%, and 12% ? Assume that only one more interest payment is to be made on Bond $ at its maturity and that 15 more poyments are to be made on Bond L. Round your answers to the nearest cent. b. Why does the longer-term bond's price vary more than the price of the chorteriterm bond when interest rates change? 1. Long-term bonds have lower reinvestment rate risk than do short-term bonds. I1. The change in price due to a change in the required rate of return increases as a bond's maturity decreases. III. Long-term bonds have greater interest rate risk than do short-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 lower interest rate risk than do short-term bonds. The real risk-free rate is 2.25%. Inflation is expected to be 2.50% this year and 5.00% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places. What is the yleld on 3-year. Treasury securites? Do not round intermediate caiculations. Round your answer to two decimal places