Question: A bond trader 0 0 0 erves the 1 0 The Treasury yield curve is dowmward sloping. Empirical data indicate that a positive maturity risk

A bond trader 000erves the 10
The Treasury yield curve is dowmward sloping.
Empirical data indicate that a positive maturity risk premium applies to both Trcasury and corporate bonds.
On the basis of this information, which of the following statements is moat CORRECT?
a. The corporate yield curve must be flat.
b. Since the Treasury yield curve is dowmward sloping, the corporate yield curve must also be downwand shoping
c. A 5-year corporate bond must have a higher yicld than a 10-ycar Treasury bond.
d. A 10-year corporate bond must have a higher yield than a 5-year Treasury bond.
e. A 10-year Treasury bond must have a higher yield than a 10-year corporate bond.
A bond trader 0 0 0 erves the 1 0 The Treasury

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