ebook Problem Wald-Through 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 10 years, while Boods matures in 1 year What will the value of the Bond L. be if the going interest rates 7%, 8%, and 1197 Assume that only one more interest payment is to be made on Bond Stits maturity and at 10 more monta are to be made on Bond L. Round your answers to the nearest cent. Bend $ Boods b. Why does the longer term bond's price vary more than the price of the shorter term bond we Wrest rates change? 1. The change in price due to a change in the required rate of return decreases as a bond's maturity increases II. Long term bonds have lower interest rate risk than do short-term bonds III. Long-term bonds have lower reinvestment rater than do short-term bonds TV. The change in price due to a change in the required rate of return increases as a band's maturity decreases W. Long-term bands have greater interest rate risk than de short-term bonds