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