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Which of the following statements is CORRECT? O a. The yield on a 2-year corporate bond should always exceed the yield on a 2-year Treasury

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Which of the following statements is CORRECT? O a. The yield on a 2-year corporate bond should always exceed the yield on a 2-year Treasury bond. b. The yield on a 3-year Treasury bond should always exceed the yield on a 3-year corporate bond c. If inflation is expected to increase each year for the next 3 years, then the yield on a 2- year bond should exceed the yield on a 3-year bond. Cd. The risk-free rate is equal to the real rate plus the liquidity premium

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