Long-Run Inflation Expectations in the Capital Markets Can Be Estimated

Multiple Choice

Long-run inflation expectations in the capital markets can be estimated by:

A) subtracting a real return component from the rate on short-term Treasury bills
B) adding a real return component to interest rates on long-term corporate bonds
C) subtracting a real return component from the rate on long-term Treasury securities
D) adding a real return component to interest rates on short-term corporate securities