6. Bond yields and prices over time A bond investor is analyzing the following annual coupon bonds: Issuing Company Smith Enterprises Irwin Incorporated Johnson Metalworks Annual Coupon Rate 690 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 I$ 1200 1100 1000 900 800 700 600 YEARS TO MATURITY Johnson Irwin Smith All of the bonds will have the same value when they reach maturity The expected capital gains yield for Smith's bonds is positive. Irwin's bonds are a better investment than Smith's bonds Johnson's bonds are a better investment than Irwin's bonds. Based eding information, which of the following statements are true? Check all that apply. Johnson's bonds have exhibited a substantial trading volume in the past few years. Its bonds would be referred to as a 6. Bond yields and prices over time A bond investor is analyzing the following annual coupon bonds: Issuing Company Smith Enterprises Irwin Incorporated Johnson Metalworks Annual Coupon Rate 690 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 I$ 1200 1100 1000 900 800 700 600 YEARS TO MATURITY Johnson Irwin Smith All of the bonds will have the same value when they reach maturity The expected capital gains yield for Smith's bonds is positive. Irwin's bonds are a better investment than Smith's bonds Johnson's bonds are a better investment than Irwin's bonds. Based eding information, which of the following statements are true? Check all that apply. Johnson's bonds have exhibited a substantial trading volume in the past few years. Its bonds would be referred to as a