Pure expectations theory: Two$-$year bonds

Which of the following is consistent with the pure expectations theory of the yield curve? Check all that apply.

An upward$-$sloping yield curve suggests that the market thinks interest rates are going to be higher in the future than they are today.

A downward$-$sloping yield curve suggests that the market thinks interest rates in the future will be lower than they are today.

A downward$-$sloping yield curve suggests that the market thinks interest rates in the future will be higher than they are today.

A flat yield curve suggests that the market thinks interest rates in the future will be higher than they are today.

Latasha would like to invest a certain amount of money for two years and considers investing in a one$-$year bond that pays $5$ percent and a two$-$year bond that pays $9$ percent. Latasha is considering the following investment strategies:

Strategy A: In the first year, buy a one$-$year bond that pays $5$ percent. Once that bond matures, buy another one$-$year bond that pays the forward rate.

Strategy B: In the first year, buy a two$-$year bond that pays $9$ percent annually.