Which of the following statements are correct?
- If inflation is expected to increase in the future, and if the maturity risk premium is greater than zero, then the yield curve will have an upward slope
- If the maturity risk premium is greater than zero, then the yield curve must have an upward slope
- Because long term bond are more risky than short term bonds yields on long term treasury bonds will always be higher than yields on short term t bonds
- If the maturity risk premium equals zero, the yield curve must be flat
- The yield curve can never be downward sloping