Problem 4-9 Bond Valuation and Interest Rate Risk The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a o maturity of 15 years, and Bond S has a maturity of 1 year. a. o 1. What will be the value of each of these bonds when the going rate of interest is 6%? Assume that there is only one more interest payment to be made on Bond S. Round your answers to the nearest cent. $ 1 Bond L O Bonds 2. What will be the value of each of these bonds when the going rate of interest is 9%? Assume that there is only one more Interest payment to be made on Bond S. Round your answers to the nearest cent. Bond L $ Bond S 3. What will be the value of each of these bonds when the going rate of interest is 11%? Assume that there is only one more interest payment to be made on Bond S. Round your answers to the nearest cent. Bond L $ Bond S b. Why does the longer-term (15-year) bond fluctuate more when interest rates change than does the shorter-term bond (1 year)? -Select- 1. Longer-term bonds have more interest rate risk than shorter-term bonds. II. Shorter-term bonds have more interest rate risk than longer-term bonds. III. Longer-term bonds have more reinvestment rate risk than shorter-term bonds