Part $1$ of $7$

Points: $0$ of $5$

$($Bond relationship$)$ Mason, Inc. has two bond issues outstanding, called Series A and Series B$,$ both paying the same annual interest of $$80.$ Series A has a maturity of $12$ years, whereas Series B has a maturity of $1$ year.

a$.$ What would be the value of each of these bonds when the going interest rate is $(1)6$ percent, $(2)11$ percent, and $(3)14$ percent? Assume that there is only one more interest payment to be made on the Series B bonds.

b$.$ Whu does the Innor$-$term $(12-$vear$)$ hond fluctuate more when interest rates chathe than does the shorter$-$term $(1-$vear$)$ hond$)$

a$.$ When the going interest rate is $6$ percent, the value of Series A bonds would be

$($Round to the nearest cent.$)$