If inflation is expected to increase in the future and the maturity the Treasury bond yield curve must be upward sloping. If the expectations theory holds, the Treasury bond yield curve. Because long-term bonds are riskier than short-term bonds, yield higher than yields on short-term T-bonds. The real risk-free rate is 3.05%, inflation is expected to be 2.60% this 7.06% 5.65% 5.25% 5.37% 6.44% Kebt Corporation's Class Semi bonds have a 12-year maturity and an $993.64 $983.80 If inflation is expected to increase in the future and the maturity the Treasury bond yield curve must be upward sloping. If the expectations theory holds, the Treasury bond yield curve. Because long-term bonds are riskier than short-term bonds, yield higher than yields on short-term T-bonds. The real risk-free rate is 3.05%, inflation is expected to be 2.60% this 7.06% 5.65% 5.25% 5.37% 6.44% Kebt Corporation's Class Semi bonds have a 12-year maturity and an $993.64 $983.80