Yield Difference in Treasury Securities of Varied Maturities May Be

Yield difference in Treasury securities of varied maturities may be explained by

A) marketability.
B) default risk.
C) expectations of future inflation.
D) all of the above
E) none of the above
Use the following interest rate data to answer the next five questions:
Treasury Bills, 90 days 4.20%
Commercial Paper, 90 days 4.84%
Treasury Bill, 1 year 4.67%
Treasury Note, 2 year 5.25%
Corporate Bond AA, 20 year 8.23%
Municipal Bond AA, 20 year 6.42%
Expected Annual Inflation Rate 3.00%