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Help me please :) The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has
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The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a maturity 15 years, and Bond S has a maturity of 1 year. a. made on Bond S. Do not round intermediate calculations. Round your answers to the nearest cent. Bond L: $ Bond S: $ made on Bond S. Do not round intermediate calculations. Round your answers to the nearest cent. Bond L: $ Bond S: \$ made on Bond S. Do not round intermediate calculations. Round your answers to the nearest cent. Bond L: \$ Bond S: \$ b. Why does the longer-term (15-year) bond fluctuate more when interest rates change than does the shorter-term bond (1 year)? I. 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. III. Longer-term bonds have more interest rate risk than shorter-term bondsStep by Step Solution
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