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A bond investor Is analyzing the following annual coupon bonds: Annual Coupon Rate 6% Issuing Company Johnson Incorporated Smith, LLC Irwin Corporation 12% 9% Each

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A bond investor Is analyzing the following annual coupon bonds: Annual Coupon Rate 6% Issuing Company Johnson Incorporated Smith, LLC Irwin Corporation 12% 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 VALUESI 1200 1100 B 1000 930 800 00 600 10 B 6 . 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 Johnson Incorporated Based on the Irwin Corporation Smith, LLC hich of the following statements are true? Check all that apply. The expected capital gains yield for Smith, LLC's bonds is greater than 12%. Johnson Incorporated's bonds have the highest expected total return. The expected capital gains yield for Smith, LLC's bonds is negative. The bonds have the same expected total return. Johnson Incorporated just registered and issued its bonds, which will be sold in the bond market for the first time. Johnson Incorporated's bonds would be referred to as 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 Curvec Based on the preceding information, which of the following statements are true? Check all that apply. The expected capital gains yleld for Smith, LLC's bonds is greater than 12%. Johnson Incorporated's bonds have the highest expected total return. The expected capital gains yield for Smith, LLC's bonds is negative. The bonds ha an outstanding bond tal return. a new issue Johnson Incorporated ju! would be referred to as Its bonds, which will be sold in the bond market for the first time. Johnson Incorporated's bonds

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