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intures in 1 year, 4. What will the value of the Bond L be If the going interest rate is 6%, 796 , ond 10%

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intures in 1 year, 4. What will the value of the Bond L be If the going interest rate is 6%, 796 , ond 10% ? Assume that only one more intarest payment is to ben made on Bond 5 at its maturity and that 19 more peyments are to be made on Bond L Round your snewers to the nearest cent. b. Why does the ienger-term bond's price vary more than the price of the shorter-term bond when interest ratas charge? 1. Long-teirm bonds have lower reinvestment rate risk than do short-term bonds: 11. The change in price due to a change in the required rate of return increases as a bonds maturicy decreases. 1t1. 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 decreates as a bond'c maturity increases. V. Long-tarm bonds have lawer interest rate risk than do short-term bonds

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