Assume that the current Treasury bond yield curve is flat. Under this condition, then we could be sure that

Question $19$Select one:

a$.$

Inflation is expected to stay the same in the future.

b$.$

Short$-$term interest rates are more volatile than short$-$term rates.

c$.$

Decline in average inflation rate must offset the maturity risk premium.

d$.$

Maturity risk premiums could help to explain the yield curve's flatness.

e$.$

Long$-$term interest rates are more volatile than short$-$term rates.