3) The credit spread between 30-year fixed-rate mortgages and 10-year Treasury notes recently hit 2.9 percentage points. Why have mortgage spreads risen over the last year? a) The Federal Reserve is raising the federal funds rate in response to higher inflation b) Default risk has increased because the Fed is reversing its quantitative easing program c) Higher prepayment risk is being priced into mortgages based on the expectation that the Fed may soon lower interest rates if the economy falls into a recession d) All of the above are true e) Both (a) and (c) are true 14