6. Bond yields and prices over time A bond investor is analyzing the following annual coupon bonds: Issuing Company Smith Corporation Irwin Incorporated Annual Coupon Rate 6% 12% Johnson, LLC 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 900 800 700 600 10 8 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 Curve B Curve C 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%. Johnson, LLC's bonds are selling at par. Irwin Incorporated's bonds have the highest expected total return. a newly issued The current yield for Irwin Incorporated's bonds is greater than 9%. an outstanding If a bond is selling for a price much lower than its par value, it is most likely that the bond is bond