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Question 2 3 pts Which of the following statements is CORRECT? o If inflation is expected to decrease in the future and the maturity risk
Question 2 3 pts Which of the following statements is CORRECT? o If inflation is expected to decrease in the future and the maturity risk premium (MRP) is zero, the Treasury bond yield curve must be upward sloping O If the maturity risk premium (MRP) is greater than zero, the Treasury bond yield curve must be upward sloping O Because long-term bonds are riskier than short-term bonds, yields on long- term Treasury bonds will always be higher than yields on short-term T-bonds o If the maturity risk premium (MRP) equals zero, the Treasury bond yield curve must be flat o If inflation is expected to decrease in the future and the maturity risk premium (MRP) is zero, the Treasury bond yield curve must be downward sloping
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