investor has two bonds in his portfollo that have a face value of $1,000 and pay an 11% annual coupon. Bond L matures in 10 years, nile Bond 5 matures in 1 year. What will the value of the Bond L be if the going interest rate is 7%,8%, and 12% ? Assume that only one more interest payment is to be made on Bond S at its maturity and that 10 more payments 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 snorter-term bond when interent rates change? 1. Lang-term bonds have lower interest rate risk than do short-term bonds. If. Long-term bonds have lower reinvestment rate risk than do short-term bonds, III. The change in price due to a change in the required rate of return increases as a bond's maturity decreases. IV. Long-term bonds have greater interest rate risk than do short-term bonds. v. The change in price due to a change in the required rate of retuen cecceases as a bond's maturity increases