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6. Bond yields and prices over time A bond Investor is analyzing the following annual coupon bonds: Annual Coupon Rate Issuing Company Irwin Enterprises Johnson
6. Bond yields and prices over time A bond Investor is analyzing the following annual coupon bonds: Annual Coupon Rate Issuing Company Irwin Enterprises Johnson Incorporated Smith Metalworld 129 fach band has 10 years until maturity and has the same risk. Their yield to maturity (YTM) is. Interest rates are assumed to remain constant aver the next 10 years, Lahel the curves on the following graph to indicate the path that each band's price, or value is expected to follow BOND VALUES 1200 A 1190 B 1000 30 C 800 2001 600 111 6 2 D YEARS TO MATURITY A C Based on the preceding information, which of the following statements are truny Check all that apply D Smith's hands are selling at par The current yield for Johnson's bonds is greater than 9%. The current yield toe Johnson's hands is between 0% and 9% Johnson's bonds have the highest expected total return If a band selling for a price much lower than its par value, it is most likely that the bond is bond
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