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If the yield on a Treasury real-indexed bond is 2%, while the yield on a regular Treasury bond with the same maturity is 6% one can deduct that

Select one:

a.

Markets must expect interest rates to rise to 6% in the future

b.

Markets must expect inflation rates to be 4% in the future

c.

Markets must expect inflation rates to be 6% in the future

d.

Markets must associate a higher degree of risk with the 6% bond.