6. Bond yields and prices over time Aa Aa A bond investor is analyzing the following annual coupon bonds Issuing Company Annual Coupon Rate 5% 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. Label the curves on the following graph to indicate the path that each bond's price, or value, is expected to follow OND VALUE IS 1200 1100 1000 900 800 700 600 10 YEARS TO MATURITY Based on the preceding information, which of the following statements are true? Check all that apply Johnson's bonds are a better investment than Irwin's bonds All of the bonds will have the same value when they reach maturity Smith's bonds are a better investment than Johnson's bonds The expected capital gains yield for Irwin's bonds is positive 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 an outstanding bond a new issue