nd Study Tools tions ccess Tips access Tips back Ch 07: Assignment-Bonds and Their Valuation 6. Bond yields and prices over time A bond investor is analyzing the following annual coupon bonde Issuing Company Johnson Incorporated Smith, LLC Irwin Corporation Each bond has 10 years until maturity and the same level of risk. Their yield to maturty (YTM) is 9% Interest rates are assumed to remain constant over the next 10 years BOND VALUES 1200 1100 1000 920 800 700 M 13 - Annual Coupon Rate 6% 12% 9% B 01 . C 2 EMERGE NZ E Mi A O udy Tools Tips Tips 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. Smith, LLC's bonds have the highest expected total return. The current yield for Smith, LLC's bonds is greater than 9%. The current yield for Smith, LLC's bonds is between 0% and 9%. Irwin Corporation's bonds are selling at par Johnson Incorporated just registered and issued its bonds, which will be sold in the bond market for the first time. Johnson Incorporated's bonds would be referred to as Grade It Now Save & Continue Continue without saving