6. Bond yields and prices over time Aa Aa 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 follow. BOND VALUE ($1 1200 1100 Smith Irwin Johnson 1000 900 800 700 600 10 8 4 2 0 YEARS TO MATURITY Based on the preceding information, which of the following statements are true? Check all that apply. Smith's bonds have the highest expected total return. Irwin's bonds are selling at par. The current yield for Smith's bonds is greater than 9%. The current yield for Smith's bonds is between 0% and 9%. 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 a seasoned issue a new issue