Ch. 7 Problems Bonds and Their Valuation Due Today at 1 1:59 PM MST issuing company Irwin Enterprises Johnson Incorporated Smith Metalworks Annua Coupon Kae 6% 12% 996 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 ($ 1200 Johnson 1100 Smith 1000 900 Irwin 800 700 600 10 YEARS TO MATURITY Based on the preceding information, which of the following statements are true? Check all that apply. Irwin's bonds have the highest expected total return. The expected capital gains yield for Johnson's bonds is greater than 12%. The expected capital gains yield for Johnson's bonds is negative. The bonds have the same expected total return. Smith's bonds have exhibited a substantial trading volume in the past few years. Its bonds would be referred to as a seasoned issue