Which of the following statements is CORRECT?

Select one:

a. If inflation is expected to increase, then the yield on a 2-year bond should exceed that on a 3-year bond.

b. The real risk-free rate should increase if people expect inflation to increase.

c. The yield on a 3-year corporate bond should always exceed the yield on a 2-year corporate bond.

d. The yield on a 3-year Treasury bond should always exceed the yield on a 2-year Treasury bond.

e. The yield on a 2-year corporate bond should always exceed the yield on a 2-year Treasury bond.