You Are Given the Following Data: Assume That a Highly

Multiple Choice

You are given the following data: Assume that a highly liquid market does not exist for long-term T-bonds,and the expected rate of inflation is a constant.Given these conditions,the nominal risk-free rate for T-bills is __________,and the rate on long-term Treasury bonds is __________.

A) 4%; 14%
B) 4%; 15%
C) 11%; 14%
D) 11%; 15%
E) 11%; 17%