A) The one-year interest rate over the next 8 years will be 4%, 5.5%, 6%, 8.5%, 10%, 11.5%, 14%, and 15.5%... Using the expectations theory, what will be the interest rates on a 4 year bond, a 6-year bond, and an 8-year bond?

B) The one year interest rate over the next 10 years will be 3%, 4.5%, 6%, 7.5%, 9%, 10.5%, 13%, 14.5%, 16%, and 17.5%. Assume that investors prefer holding short-term bonds so that a liquidity premium of 10 basis points is required for each of a bonds maturity. What will be interest rate on a 3-year bond, a 6-year bond, and a 9-year bond?