Consider the following yield curves.

If the Liquidity Premium Theory is the correct theory of the term structure of interest rates, for each of the above yield curves, draw the corresponding yield curve suggested by the Expectation Theory, respectively.

Again, if the Liquidity Premium Theory is the correct theory of the term structure of interest rates, what does each yield curve in the question tell us about peoples believe about short-term interest rates in the future?

Yield to Maturity Yield to Maturity Term to Maturity Term to Maturity (a) (b) Yield to Maturity Yield to Maturity Term to Maturity Term to Maturity (c) (d) Yield to Maturity Yield to Maturity Term to Maturity Term to Maturity (a) (b) Yield to Maturity Yield to Maturity Term to Maturity Term to Maturity (c) (d)