A bond investor is analyzing the following annual coupon bonds?

Issuing Company

Annual Coupon Rate

Smith Enterprises6%

rwin Incorporated12%

Johnson Metalworks9%

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. Identify the curves on the following graph to indicate the path that each bond's price, or value, is expected to follow.

A B C

Based on the preceding information, which of the following statements are true?

A. The current yield for Irwin's bonds is between 0% and 9%.

B. Irwin's bonds have the highest expected total return.

C. The current yield for Irwin's bonds is greater than 9%.

D. Johnson's bonds are selling at par.

3.Johnson's bonds have exhibited a substantial trading volume in the past few years. Its bonds would be referred to as _____________