The table at the right provides information for six different bonds, the current market price (P), the lace value of the bond (V), and the number of years before the bond matures (N) a In each case, compute the bond's yield, assuming that you keep the bond until it matures. There are no coupons Itx is the bonds yield, then where V is the face value of the bond, Pis the current market price, and N is the number of years before the bond matures. (Do not round until your final answer Round your responses to one decimal place) Bond Number Bond's Yield 18 1b 20 26 3a 3b b. Suppose that bonds 1a, 2a and 3a are all issued by the same borrower Can you offer an explanation for the relationship between the bond yields and the terms to malunty? For all of the "a" bonds, we see that the bond yield reflects the fact that time with the term to maturity. This lakely require a premium to have their funds tied up for longer periods of Suppose that bonds 1b, 2b, and 3b are all issued by the same borrower. What can you conclude about the riskiness of the "a" borrower versus that of the "b" bonower? Explain Blond Number Market Face Value Price (P) 3 Years to Maturity (N) 18 $732 5750 16 5/14 $750 1 2a $1290 $1500 . 20 $1207 $1500 38 $1507 12250 5 36 $1397 $2250 5 Notice that for any given term to maturity, the yield on the " bond has a relatively higher yield Time Remaining: no 2039