eBook Bond Valuation and Interest Rate Risk The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest Pius $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S has a maturity of 1 year a 1. What will be the value of each of these bonds when the going rate of interest is 487 Assume that there is only one more interest payment to be made on Band cent Bond LS Bond S: 5 2. What will be the value of each of these bonds when the going rate of interest is 10%? Assume that there is only one more interest payment to be made on Bond 5. Do not round intermediate calculations. Round your answers to the nearest cent. Bond LS Bond 5:5 1. What will be the value of each of these bonds when the going rate of interest is 1387 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 Bond Sis b. Why does the longer term (15 year) bood luctuate more when interest rates change than does the shorter-term bond (1 year? 1. Longer-term bonds have less interest rate risk than shorter-term bonds II. Longer term bonds have less reinvestment rate risk than shorter-term bonds. 111. Longer-term bonds have more interest rate risk than shorter-term bonds