6. Bond yields and prices over time A bond investor is analyzing the following annual coupon bonds: Issuing Company Annual Coupon Rate Smith Corporation 69 Irwin Incorporated 12% Johnson, LLC 9% Each bond has 10 years until maturity and the same level of risk. Thelr yleld to maturity (YTM) is 9%, Interest rates are assumed to remain constant over the next 10 years BONO VALUE IS 1200 1100 B 1000 700 800 700 w 1200 A 1100 B 1000 900 300 700 400 10 4 2 0 YEARS TO MATURITY Using the previous information, correctly match each curve on the graph to les corresponding suing company (Mines Each curve indicates the path that each bond's price, or valve, is expected to follow.) Curve A Curves Curve Johnson, LLC Based on the Smith Corporation Irwin Incorporated! which of the following statements are true? Check all that apply 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 Curve C Based on the preceding Information, which of the following statements are true? Check all that apply. The expected capital gains yield for Irwin Incorporated's bonds is greater than 12%. Smith Corporation's bonds have the highest expected total return The bonds have the same expected total return The expected capital gains yield for Irwin Incorporated's bonds is negative. Smith Corporation just registered and issued its bonds, which will be sold in the bond market for the first time. Smith Corporation's bonds would be referred to as