n Define the graph Sn,k as the graph with vertex set the set of k-elements subsets of {1,2,,n} and where two such subsets are joined by an edge if and only if they have exactly k1 elements in common. (a) Draw S4,2 and S4,3. (b) How many vertices and edges does Sn,k have?.

1. n investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual
coupon. Bond L matures in 19 years, while Bond S matures in year. a. What will the value of the
Bond L be if the going interest rate is 6%,7%, and 12% ? Assume that only one more interest
payment is to be made on Bond. 5 at its maturity and that 19 more payments are to be made on
Bond L. Round your answers to the nearest cent. b. Why does the longer-term bond's price vary
more than the price of the shorter-term bond when interest rates change? 1. Long-term bonds
have lower interest rate risk than do short-term bonds: II. Long -term bonds have lower
reinvestment rate risk than do short-term bends. Iit. The change in price due to a change in the
required rate of return increases as a bond's maturity decreases. IV. Long-term bonds have
greater interest rate risk than do short-term bonds. v. The change in price due to a change in the
required rate of return decreases as a bond's maturity increases.