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The inflation premium: 1. increases the real return. 2. is inversely related to the time to maturity. 3. remains constant over time. 4. rewards investors

The inflation premium:

1. increases the real return.
2.

is inversely related to the time to maturity.
3.

remains constant over time.
4.

rewards investors for accepting interest rate risk.
5.

compensates investors for expected price increases.

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