Given the following $100 par value risk-free, zero-coupon bonds:

Bond	Years to Maturity	Yield to Maturity
A	1	5%
B	2	6%
C	3	6.5%
D	4	7%

a) If the expectations hypothesis is correct, what is the markets expectation of the one-year interest rate three years from now?

b) If you believe liquidity preference theory are expected future rates higher or lower or equal to the forward rate?

Please provide detailed step answers