An investor has two bonds in his portfolio that have a facevalue of $1,000 and pay a 12% annual coupon. Bond L matures in 19years, while Bond S matures in 1 year. Assume that only one moreinterest payment is to be made on Bond S at its maturity and that19 more payments are to be made on Bond L. What will the value ofthe Bond L be if the going interest rate is 5%? Round your answerto the nearest cent. $ What will the value of the Bond S be if thegoing interest rate is 5%? Round your answer to the nearest cent. $What will the value of the Bond L be if the going interest rate is9%? Round your answer to the nearest cent. $ What will the value ofthe Bond S be if the going interest rate is 9%? Round your answerto the nearest cent. $ What will the value of the Bond L be if thegoing interest rate is 12%? Round your answer to the nearest cent.$ What will the value of the Bond S be if the going interest rateis 12%? Round your answer to the nearest cent. $ Why does thelonger-term bond’s price vary more than the price of theshorter-term bond when interest rates change? Long-term bonds havegreater interest rate risk than do short-term bonds. The change inprice due to a change in the required rate of return decreases as abond's maturity increases. Long-term bonds have lower interest raterisk than do short-term bonds. Long-term bonds have lowerreinvestment rate risk than do short-term bonds. The change inprice due to a change in the required rate of return increases as abond's maturity decreases. Grade It Now Save and Continue Continuewithout saving