You believe price levels are going to increase over the upcoming 10 years. If there is a positive maturity risk premium on government and private bonds, and the real risk-free rate of interest is assumed to stay the same as it is now. Of the statements below, which would you agree with?

a. The yield on any corporate bond must exceed the yields on all Treasury bonds.

	b.	The Treasury yield curve under the stated conditions would be humped rather than have a consistent positive or negative slope.
	c.	The stated conditions cannot all be true they are internally inconsistent.
	d.	The yield on 10-year Treasury securities must exceed the yield on 7-year Treasury securities.
	e.	The yield on 7-year corporate bonds must exceed the yield on 10-year Treasury bonds.