man investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual coupon. Bond L matures in 13 years, while Bond S matures n 1 year What will the value of the Bond L be if the going interest rate is 7%, 9%, and 12%? Assume that only one more interest payment is to be made on Bond - its maturity and that 13 more payments are to be made on Bond L. Round your answers to the nearest cent. 12% 79 99 Bond $ Bonds $ b. Why does the longer-term bond's price vary more than the price of the shorter-term bond when interest rates change? 1. The change in price due to a change in the required rate of return increases as a bond's maturity decreases IL Long-term bonds have greater interest rate risk than do short-term bonds III. The change in price due to a change in the required rate of return decreases as a bond's maturity increases TV. Long-term bonds have lower interest rate risk than do short-term bonds. V long-term bonds have lower reinvestment rate risk than do short-term bonds