Investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% aninual coupan. Berid in matures in 11 years, while Bond $ mafures in 1 at its maturity and that 11 more payments are to be made on Bond L. Pound your answers to the nearest cent. b. Why does the looger-term bond's price vary more than the peice of the sherter-torm bond when Interest rates change? 1. The change in price dve to a change in the requited rate of return increases as a bond's maturity decreaser. TI. Long-term bonds have greater interest rate thak than do shart-term bands. 111. The change in price due to a change in the required rate of retum decreases as a band's miatunty incif +s.: 1V. Longiterm bonits have tawer interest rate risk than do shortiterm bends: Vi Long-term bonds have lower relnvestment fate risk than do shert-tem bonds. Investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% aninual coupan. Berid in matures in 11 years, while Bond $ mafures in 1 at its maturity and that 11 more payments are to be made on Bond L. Pound your answers to the nearest cent. b. Why does the looger-term bond's price vary more than the peice of the sherter-torm bond when Interest rates change? 1. The change in price dve to a change in the requited rate of return increases as a bond's maturity decreaser. TI. Long-term bonds have greater interest rate thak than do shart-term bands. 111. The change in price due to a change in the required rate of retum decreases as a band's miatunty incif +s.: 1V. Longiterm bonits have tawer interest rate risk than do shortiterm bends: Vi Long-term bonds have lower relnvestment fate risk than do shert-tem bonds