Assume you are looking at the following bonds for purchase:

Bond A: 5 year US Treasury Note @ 3.25% YTM

Bond B: 10 year US Treasury Note @ 3.50% YTM

Bond C: 5 year BBB rated Non-Callable Corporate Bond @ 4.85% YTM

Bond D: 10 year AA rated Non-Callable Corporate Bond @ 4.35% YTM

Bond E: 10 year Agency Callable in 5 years @ 4.40% YTC | 4.75% YTM

If a fear of higher future inflation becomes widespread in the market, investors purchasing bonds will likely require...

a) higher credit spreads to treasuries.

b) higher yields on benchmark treasuries.

c) lower credit spreads to treasuries.

d) lower yields on benchmark treasuries.