3. Bond yields and prices over time A bond investor is analyzing the following annual coupon bonds Annual Coupon Rate 6% Issuing Company Smith Corporation Irwin Incorporated Johnson, LLC 12% 9% Each bond has 10 years until maturity and the same level of risk. Their yield to maturity (YTM) is 9%. Interest rates are assumed to remain constant over the next 10 years. BOND VALUE $1 1200 A 1100 B 1000 900 RDO 700 600 10 4 2 0 YEARS TO MATURITY B 1000 900 C 200 700 400 10 3 6 4 2 0 YEARS TO MATURITY Using the previous information, correctly match each curve on the graph to it's corresponding issuing company. (Hint: Each curve indicates the path that each bond's price, or value, is expected to follow.) Curve A Smith Corporation Curve B Curve C Based on the preceding information, which of the following statements are true? Check all that apply. Johnson, LLC's bonds are selling at par. Trwin Incorporated's bonds have the highest expected total return. The current yield for Irwin Incorporated's bonds is between 0% and 9% The current yield for Irwin Incorporated's bonds is greater than 9% Johnson, LLC's bonds have exhibited a substantial trading volume in the past few years. Its bonds would be referred to as a Using the previous information, correctly match each curve on the graph to it's corre that each bond's price, or value, is expected to follow.) Curve A Smith Corporation Curve B Smith Corporation Curve C Johnson, LLC Based on the Irwin Incorporated which of the following statements are true? Chee Johnson, LLC's bonds are selling at par. Irwin Incorporated's bonds have the highest expected total return. The current yield for Irwin Incorporated's bonds is between 0% and 9%. 200 700 400 10 4 2 0 YEARS TO MATURITY ng the previous information, correctly match each curve on the graph to it's corresponding issuing company. (Hint: Each curve indicates the pat t each bond's price, or value, is expected to follow.) urve A Smith Corporation urve B urve C ed on the preceding Information, which of the following statements are true? Check all that apply. Johnson, LLC's bonds are selling at par Irwin Incorporated's bonds have the highest expected total return. The current yield for Irwin Incorporated's bonds is between 0% and 9%. The current yield for Irwin Incorporated's bonds is greater than 9%. seasoned issue new Issue nson, LLC's bonds have exhibited a substantial trading volume in the past few years. Its bonds would be referred to as a