20) The real risk-free rate is 3%, inflation is expected to be 2% this year, and the maturity risk premium is zero. Ignoring any cross-product terms, what is the equilibrium rate of return on a 1-year Treasury bond? (10p) a. 4.90% b. 5.00% c. 5.30% 21) For at least the next 10 years, the real risk-free rate of interest, r*, is expected to remain at 3%, inflation is expected to steadily increase steadily, 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? (5p) a. The yield on 5-year corporate bonds must exceed the yield on 8-year Treasury bonds. b. The yield curve must be