Expectation theory tells us that if we expect that the interest rate on a 15-year bond due in 3 years will be 12% the interest rate on a 3-year bond will be?

a, 4%, b, 36%, c, 12%, d, 15%

Liquidity premium theory tells us that if we expect that the interest rate on a 15-year bond due in 3 years will be 12% the interest rate on a 3-year bond will be?

a, 4%, b, 36%, c,12%, d,15%