8. Pure expectations theory Which of the following is consistent with the pure expectations theory of the yield curve? Check all that apply. An upward-sloping yield curve implies that the market thinks short-term interest rates are going to be higher in the future than they currently are. Long-term interest rates are based on expectations of what short-term interest rates will be in the future. A flat yield curve suggests that the market thinks interest rates in the future will be the same as they are today. An inverted yield curve suggests that the market thinks short-term interest rates in the future will be lower than they are today. Cho would like to invest a certain amount of money for two years and considers investing in a one-year bond that pays 7% and a two-year bo pays 7%. Cho is considering the following investment strategies: Strategy A: Buy a one-year bond that pays 7% and in one year buy another one-year bond. Strategy B: Buy a two-year bond that pays 7% this year and 7% next year. If the one-year bond that Cho can purchase in one year pays 9%, Cho will choose (Note: Assume there is no compounding