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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 Johnson Incorporated Smith,
6. Bond yields and prices over time A bond Investor is analyzing the following annual coupon bonds: Annual Coupon Rate Issuing Company Johnson Incorporated Smith, LLC 6% 12% Irwin Corporation 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 VALUES 1200 A 1100 B 1000 900 BOO 700 600 10 B 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. Smith, LLC's bonds have the highest expected total return Irwin Corporation's bonds are selling at par. The current yield for Smith, LLC's bonds is between 0% and 9% The current yield for Smith, LLC's bonds is greater than 9% Irwin Corporation'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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