of $1,100. What are their nominal yield to maturity and their nominal yield to call? What Por,ure Calldule 5 years at $1,050, and currently sell at a price return should investors expect to earn on these bonds? BOND VALUATION An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10% annual coupon. Bond L matures in 15 years, while Bond S matures in 1 year. a. What will the value of each bond be if the going interest rate is 5%, 8%, and 12%? Assume that only one more interest payment is to be made on Bond S at its maturity and that 15 more payments are to be made on Bond L. b. Why does the longer-term bond's price vary more than the price of the shorter-term bond when interest rates change? BOND VALUATION An investor has two bonds in her portfolio, Bond C and Bond Z. Each of $1.000 and has a yield to maturity of 9.6%