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The real risk-free rate is expected to remain constant in the future, te of inflation expectal for the next 2 years after which is explore

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The real risk-free rate is expected to remain constant in the future, te of inflation expectal for the next 2 years after which is explore the positive attity risk premium that increases with years to maturity Civen these conditions, which of the following statements CORRECT MO Select one O The conditions in the problem anat all but they wintemally consistent O b. The yield on a year but exceed that on a 5-year The O The yield ca year Trouw hond most exceed that of 5 year corporate bond Od The yield Syew Treasury bond most exceed that on a 2 year Trosary bond O. The Treasury yield arve under the stated condition will be bumped her than have a compositive resep

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