6. Fend yinlefs and prices over limet A bond investen is amairaing the foldeing atinual...

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6. Fend yinlefs and prices over limet A bond investen is amairaing the foldeing atinual coigon teriols. aver the best 10 vears. Each bond has 10 vears until maturity and the same level of rick. Their vield to maturity (rim) is 97 . Interest fates are assumbed to femain constant ove the next 10 years. Using the previous information, correcty natch each aurve on the graph to it) corresponding asuirig company. (Mint: Gach curve indicates the path that each bonds price, or value, is expected to followi.) Based on the preceding information, which of the following statements are true? Cheok all that apoly: The bonds have the same expected total return. The expected capital gains vield for Simith, LLics bonds is greater than 12%. Jehnson Incorporated bonds have the highest expected total return. The expected capial gains viela for Smith, Lhes tonds is negative. If a bond is selling for a price much lower than its par value, it is meat likely that the bind is bond. A bond investor is analyeing the following annual coveon bonds: Each bond has 10 vears until matuity and the same level of tiak. Their yied to matinay (VTM) is ow. Interest rates are askumed to reanain censtant. over the neat 10 reare. Each bond has 10 years until maturity and the same level of risk: Their yledd to maturity (rim) is 9%. Intereut rates are assumed to remain constant over the next 10 years. Using the previous information, corroctly match each curve on the graph to if ir correspondiriy asuary compomy. (IWint: fach curve inidicatey the path. that each bond's price, or value, is expectod to folow.) Based on the neeceding information, which of the following statements are true? cheok af that axyy. The bonds have the same expected lotal return. The expeded cabital gains viedi for fimith, uCs bends is areater than 12 h. 3ahnisen Incomporated boruds have the hoge espected tot al fetiom. The expected rapital gains vieli for fienith, Lics bends is nieoutive

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