0.7390 versus zero for T-bonds, and the maturity risk prem um -1) x 0.1%, where t-numberof years to maturity. What is the default ri remium (DRP) &R a. 0.60% b. 1.10% c. 1.50% d. 2.25% e. 3.00% 21. Assume that a noncallable 10-year T-bond has a 12% annual coupon, while a 15-year noncall 8 has an 8% annual coupon. Assume also that the yield curve is flat, and all Treasury securities hav a. If interest rates decline, the prices of both bonds would increase, but the 15-year bond wou b. If interest rates decline, the prices of both bonds would increase, but the 10-year bond wou c. The 10-year bond would sell at a discount, while the 15-year bond would sell at a premiun e. If the yield to maturity on both bonds remains at 10% over the next year, the price of the l to maturity. Which of the following statements is CORRECT? larger percentage increase in price. larger percentage increase in price. d. The 10-year bond would sell at a premium, while the 15-year bond would sell at par. bond would increase, but the price of the 15-year bond would fall. 22. Which of the following statements is CORRECT? a. The higher the maturity risk premium, the higher the probability that the yield curve will b. The most likely explanation for an inverted yield curve is that investors expect inflation t The most likely explanation for an inverted yield curve is that investors expect inflation t