A bond trader observes the following information: The Treasury yield curve is downward sloping. Empirical data indicate that a positive maturity risk premium applies to both Treasury and corporate bonds. Empirical data also indicate that there is no liquidity premium for Treasury securities but that a positive liquidity premium is built into corporate bond yields. On the basis of this information, which of the following statements is most CORRECT?

		A 10-year corporate bond must have a higher yield than a 5-year Treasury bond.
		A 10-year Treasury bond must have a higher yield than a 10-year corporate bond.
		A 5-year corporate bond must have a higher yield than a 10-year Treasury bond.
		The corporate yield curve must be flat.
		Since the Treasury yield curve is downward sloping, the corporate yield curve must also be downward sloping.