Question: please give me the answer (only one correct answer) and explaination! the answer i gave may not be the correct one. In the foreseeable future,
In the foreseeable future, the real risk-free rate of interest, rt, is expected to remain at 3%, inflation is expected to steadily increase, and the maturity risk premium is expected to be 0.1(t 13%, 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 upward sloping. c. The yield curve must be "humped." d. The yield on 2-year Treasury securities must exceed the yield on 5-year Treasury securities. e. The yield on 5-year corporate bonds must exceed the yield on 8-year Treasury bonds
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