Question: Multiple - Choice: - Conceptual Assume that inflation is expected 4 0 decline steadily in the future, but shat shereal - sisk - free -

Multiple-Choice:-Conceptual
Assume that inflation is expected 40 decline steadily in the future, but shat shereal-sisk-free-fate, 42, will remain constant. Which of the following statements is CORNECT, other things field constant?
Hithe pure expectations theory holds, the Treasury yield-curve must be downward sioping. 5
If the pure expectations theory holds, the-corporate yield curve anust be-downward stoping. 9
If there-is a-positive maturity sisk premium, the Treasury yied curve-must be-apwardsloping. 1
If-inflation as expected 40 decline, there can be-no-maturity sisk-premium. 1
Multiple - Choice: - Conceptual Assume that

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