Multiple Choice: Identify the choice that best completes the statement or answers the question. (3 points each) 1. Inflation is expected to be 2.75% this year, 3% next year and 2.5% ever year after. What inflation premium should an investor expect on a 5 year bond? a. b. C. d. e. 2.50% 2.65% 2.75% 3.00% 3.15%