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Question 4 3 pts Which of the following statements is CORRECT? If inflation is expected to decrease in the future and the maturity risk premium

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Question 4 3 pts Which of the following statements is CORRECT? 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 If the maturity risk premium (MRP) is greater than zero, the Treasury bond yield curve must be upward sloping If the maturity risk premium (MRP) equals zero, the Treasury bond yield curve must be flat 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 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

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