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A bond Investor is analyzing the following annual coupon bonds: Annual Coupon Rate 6% Issuing Company Smith Corporation Irwin Incorporated Johnson, LLC 12% 996 Each

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A bond Investor is analyzing the following annual coupon bonds: Annual Coupon Rate 6% Issuing Company Smith Corporation Irwin Incorporated Johnson, LLC 12% 996 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 1100 B 1000 900 800 700 Using the previous information, correctly match cach 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. Johnson, LLC's bonds are a better investment than Irwin Incorporated's bonds. Irwin Incorporated's bonds are a better investment than Smith Corporation's bonds. The expected capital gains yield for Smith Corporation's bonds is positive All of the bonds will have the same value when they reach maturity If a bond is selling for a price much lower than its par value, it is most likely that the bond is bond Grade It Now Save & Continue Continue without saving

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