Question: Check My Work ( 1 remaining ) In the foreseeable future, the real risk - free rate of interest, r * * , is expected

Check My Work (1 remaining)
In the foreseeable future, the real risk-free rate of interest, r**, is expected to remain at 3%, inflation is expected to steadily increase, and the maturity risk premium is expected to be 0.1(t-1)%, where t is the number of years until the bond matures. Given this information, which of the following statements is CORRECT?
a. The yield on 5-year Treasury securities must exceed the yield on 10-year corporate bonds.
b. The yield curve must be "humped."
c. The yield on 5-year corporate bonds must exceed the yield on 8-year Treasury bonds.
d. The yield on 2-year Treasury securities must exceed the yield on 5-year Treasury securities.
e. The yield curve must be upward sloping.
Check My Work ( 1 remaining ) In the foreseeable

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