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

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A bond investor is analyzing the following annual coupon bonds: Issuing Company Smith Corporation Irwin Incorporated Annual Coupon Rate 6% 12% 9% Johnson, LLC 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 VALUE ISI 1200 1100 B 1000 100 300 700 600 10 6 4 2 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 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. 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, Irwin Incorporated's bonds are a better investment than Smith Corporation's bonds. Johnson, LLC's bonds have exhibited a substantial trading volume in the past few years. Its bonds would be referred to as a

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