n investor has two bends in his portfolio that have a face value of $1,000 and pay a 10% annual coupon, Bond L matures in 17 years, while Bond S matures in 1 year. a. What will the value of the Bond L be if the going interest rate is 6%, 8\%, and 11% ? Assume that only one more interest payment is to be made on Bond 5 at its matunity. and that 17 more poyments are to be made on Bond L. Round your answers to the nearest cent. b. Why does the longerterm 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 requred rate of return increases as a bond's maturity decreases. 11. Long-term bonds have greater interest rate risk than do shert-term bonds: 13. 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 ratf risk than do short-term bonds. W. Long-term bonds have lower reinvestment rate risk than do short term bonds