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A bond investor is analyzing the following annual coupon bonds: Issuing Company Smith Enterprises Irwin Incorporated Johnson Metalworks Annual Coupon Rate 6% 12% 9% Each

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A bond investor is analyzing the following annual coupon bonds: Issuing Company Smith Enterprises Irwin Incorporated Johnson Metalworks Annual Coupon Rate 6% 12% 9% Each bond has 10 years until maturity and has the same risk. The bonds' 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 BOND VALUE IS 1200 1100 1000 900 800 ohnson Smith Irwin 700 600 10 YEARS TO MATURITY Based on the preceding information, which of the following statements are true? Check all that apply The current yield for Irwin's bonds is between 0% and 996. Johnson's bonds are selling at par The current yield for Irwin's bonds is greater than 996. Irwin's bonds have the highest expected total return. Johnson's bonds have had substantial trading volume in the past few years. Its bonds would be referred to as

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