6. Bond yields and prices over time A bond investor is analyzing the following annual coupon bonds: Issuing Company Annual Coupon Rate 6% Irwin Enterprises Johnson Incorporated 12% Smith Metalworks 9% Each bond has 10 years until maturity and has the same risk. Their yield to maturity (YTM) is 9%. Interest rates are assumed to remain constant over the next 10 years. Identify the curves on the following graph to indicate the path that each bond's price, or value, is expected to follow. BOND VALUE ($1 1200 A 1100 B 1000 900 c 800 700 600 10 8 6 4 2 0 YEARS TO MATURITY A B Based on the preceding information, which of the following statements are true? Check all that apply. Irwin's bonds have the highest expected total return. The expected capital gains yield for Johnson's bonds is negative. O The bonds have the same expected total return. The expected capital gains yield for Johnson's bonds is greater than 12%. Irwin just registered and issued its bonds, which will be sold in the bond market for the first time. Irwin's bonds would be referred to as