(6 points) Assume that annualized yields of short-term and long-term securities are initially equal (i.e., the yield curve is initially flat). If investors expect the Bank of Canada to increase interest rate in the future. Analyze based on the pure expectation theory: i. (4 points) How will this expectation on interest rate affect the yield of the short-term securities? Provide a brief explanation of your answers using demand-supply analysis (i.e., how will this expectation affect demand and supply of short-term securities, and in turn, the yield of the short-term securities). ii. (2 points) How will it affect the yield curve? Draw the yield curve based on your analysis (Note: please clearly label the axis)