1. Which bond has the highest expected total return?

A The bonds have the same expected total return

B Turner's bonds have the the highest expected total return

C Irwin's bonds have teh the highest expected total return

D Murdoch's bonds have the highest expected total return

2. The expected capital gains for Turner's bonds is:

A Less than 0%

B Greater than 12%

C Between 0% and 9%

D Between 9% and 12%

3. The current yield for Turner's bonds is:

A Between 0% and (%

B Greater than 9%

C Less than 0%

4. The current yield for Murdoch's bonds is:

A More than 12%

B 6%

C Less than 0%

D 9%

E 12%

F 3%

Each of the bonds 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 graph below to indicate the path each bond's price , or value, is expected to follow