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

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A bond investor is analyzing the following annual coupon bonds: Issuing Company Johnson Enterprises Smith Incorporated Irwin Metalworks Annual Coupon Rate 6% 12% 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 follovw BOND VALUE I$ 1200 1100 1000 900 800 700 600 10 YEARS TO MATURITY Based on the preceding information, which of the following statements are true? Check all that apply | The expected capital gains yield for Smith's bonds is greater than 12% The expected capital gains yield for Smith's bonds is negative Johnson's bonds have the highest expected total return The bonds have the same expected total return 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

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