The Desreumaux IEompany has two bond issues outstanding. Both bonds pay $100 annual interest plus $1.000 at maturity. Bond L has a matunty of 15 years and Bond 5 has a maturity of one year. a. What will be the value of each of these bonds when the going rate of interest is [1} 5 percent. [2} 2 percent. and [3} 11 percent? Assume that there is onlyr one more interest payment to he made on Bond 5. lo. Why does the longer-term {15-year} bond uctuate more when interest rates change than does the shorter-term bond {1-year}? The Severn Company's bonds have four years remaining to maturity: Interest is paid annually. the bonds have a $1.000 par value. and the coupon interest rate is El percent. a. Cornpute the yield to maturity for the bonds if the current market price is [1} $320 or {2] $1.104. I). Would you pay $020 for one of thEse bonds it you thought that the appropriate rate of interest was 12 percentthat is. if rd = 12%? Explain your