QUESTION 29 If the Treasury yield curve is downward sloping, how should the yield to maturity on a 10-year Treasury coupon bond compare to that on a 1-year T- bill? O a. The yield on a 10-year bond would be less than that on a 1-year bill, ob. The yield on a 10-year bond would have to be higher than that on a 1-year bill because of the maturity risk premium. oc. It is impossible to tell without knowing the coupon rates of the bonds. O d. The yields on the two section would be equal. Oe. It is impossible to tell without knowing the relative risks of the two securities QUESTION 30 Which of the following statements is CORRECT? a. The yield on a 3.year Treasury borld cannot exceed the yield on a 10-year Treasury bond b. The yield on a 2.year corporate bond should always exceed the yield on a 2.year Treasury bond. O c The yield on a 3-year corporate bond should always exceed the yield on a 2-year corporate bond 4. The yield on a 5-year corporate bond should always exceed the yield on a 2-year corporate bond o The following represents a possibly reasonable formula for the maturity risk premium or bonda: MRP--0.1960, where t is the years to