问题如下：
2. Based on Exhibit 1, the market is most likely expecting:
选项：
A.deflation
B.inflation
C.no risk premiums
解释：
B is correct.
The spot rates imply an upward-sloping yield curve, r(3) > r(2) > r(l). Because nominal yields incorporate a premium for expected inflation, an upward-sloping yield curve is generally interpreted as reflecting a market expectation of increasing, or at least level, future inflation (associated with relatively strong economic growth).
例如第五年par rate是0.0437和spot rate是0.04453，spot rate比par rate高，比预期利率高，价格下降选了deflation
