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need help If you observe a downward-sloping Treasury yield curve, which of the following scenario seems to be out of place? Maturity 1 year 5
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If you observe a downward-sloping Treasury yield curve, which of the following scenario seems to be out of place? Maturity 1 year 5 years 10 years 20 years 30 years Real risk-free rate 2.5% 2.5% 2.5% 2.5% 2.5% Inflation premium 4.8% 4.9% 5.0% 5.1% 5.2% Default risk premium 0.0% 0.0% 0.0% 0.0% 0.0% Maturity risk premium 0.1% 0.2% 0.3% 0.5% 0.9% Liquidity premium 0.0% 0.0% 0.0% 0.0% 0.0% Select one: a. Default risk premium O b. Maturity risk premium c. Liquidity premium d. Inflation premium e. Real risk-free rateStep by Step Solution
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