4-9 The Garraty Company has two bonds issues outstanding.Both bonds pay $100 annual interest

4-9 The Garraty Company has two bonds issues outstanding. Both bonds pay $100 annual interest  plus $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S a maturity of 1 year. 4-9 Bond valuation and interest risk Intermediate Financial Management: 10th ed. By Eugene F. Brigham, Philip R. Daves 4-9 The Garraty Company has two bonds issues outstanding. Both bonds pay $100 annual interest  plus $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S a maturity of 1 year. What will be the value of each of these bonds when the going rate of interest is  (1) 5 percent, (2) 8 percent, and  (3) 12 percent? Assume that there is only one more interest payment to be made on 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)? CLICK HERE FOR THE SOLUTION