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 a maturity of 1 year.
a. 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)?

Is this a homework question? If so, please read the information on the following link. https://www.askmehelpdesk.com/math-s...-b-u-font.html

Read this first: Expectations for the Homework Help board
Do not simply retype or paste a question from your book or study material

We won't do your homework questions for you.
You were given the assignment for you to learn.

If you come up with your own answer and post it for us to critique that is within reason.

If you have some SPECIFIC questions that you couldn't find or didn't understand, we may help with that.
But this is your assignment, so show us you have at least attempted to complete it on your own.

Thank you.

part a answers for bond L are 1519, 1171, and 864 and for bond S 1047, 1019 and 982
part b answers according to me is that the value of long term bond fluctuate more when interest changes because of time value of money concept..
I want to confirm the ans for part b

art a answers for bond L are 1519, 1171, and 864 and for bond S 1047, 1019 and 982
part b answers according to me is that the value of long term bond fluctuate more when interest changes because of time value of money concept..
I want to confirm the ans for part b