The real risk-free rate of interest is expected to remain constant at 3 percent for the foreseeable future. However, inflation is expected to steadily increase over the next 20 years. Assume that the expectations theory holds. Which of the following statement is most correct?

• A. The 10-year corporate bond must have a higher yield than the 5-year corporate bond.
• B. Since the expectations theory holds, this implies that 10-year corporate bonds must have the same yield as 5-year corporate bonds.
• C. The 10-year Treasury bond must have a higher yield than the 5-year corporate bond.
• D. Since the expectations theory holds, this implies that 10-year corporate bonds must have the same yield as 10-year Treasury bonds.
• E. Since the expectations theory holds, this implies that 10-year Treasury bonds must have the same yield as 5-year Treasury bonds.