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In the foreseeable future, the real risk-free rate of interest, r, is expected to remain at 3%, inflation is expected to steadily increase, and the

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In the foreseeable future, the real risk-free rate of interest, r, is expected to remain at 3%, inflation is expected to steadily increase, and the maturity risk premium is expected to be 0.1(t1)%, where t is the number of years until the bond matures. Given this information, which of the following statements is CORRECT? The yield on 5 -year corporate bonds must exceed the yield on 8 -year corporate bonds.. The yield on 2-year Treasury securities must exceed the yield on 5 -year Treasury securities. The yield on 5-year Treasury securities must exceed the yield on 10-year corporate bonds. The yield curve must be upward sloping. The yield curve must be "humped

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