Bond Valuation and Interest Rate Risk The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S has a maturity of 1 year. a. 1. What will be the value of each of these bonds when the going rate of interest is 4%? Assume that there is only one more interest payment to be made on Bond S. Round your answers to the nearest cent. Bond L: Bond S:$ 2. what will be the value of each of these bonds when the going rate of interest is 10%? 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:s 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)? I. Shorter-term bonds have more interest rate risk than longer-term bonds II. Longer-term bonds have more interest rate risk than shorter-term bonds. III. Longer-term bonds have more reinvestment rate risk than shorter-term bonds. -Select-