A bond investor is analyzing the following annual coupon bonds:

Issuing company-annual coupon rate

Johnson enterprises-6%

Smith Incorperate-12%

Irwin Metalworks-9%

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

See image below...

Based on the preceding information, which of the foilowing statenents are true? Check all that apply.

-The expected capital gains yield for Johnson's bands is positive.

-All of the bonds will have the same value when they reach maturity

-Smith's bonds are a better Investment than Johnson's bonds

-Irwin's bonds are a better investment than Smith's bonds

Johnson just registered and issued its bonds, which will be sold in the bond market for the first time Johnson's bonds would be referred to as_______

BOND VALUE IS) 1200 Smith 1100 Irwin 1000- 900 | | Johnson 800 700 600 10 YEARS TO MATURITY