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4. Bond yields and prices over time A bond investor is analyzing the following annual coupon bonds: Annual Coupon Rate Issuing Company Smith Corporation Irwin
4. Bond yields and prices over time A bond investor is analyzing the following annual coupon bonds: Annual Coupon Rate 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 ISI 1200 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 Curve B Curvec Based on the preceding information, which of the following statements are true? Check all that apply The current yield for Irwin Incorporated's bonds is between 0% and 9%. Irwin Incorporated's bonds have the highest expected total return Johnson, LLC's bonds are selling at par. 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
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