Suppose you have the following yield curve (i.e., YTMs for the following zero-coupon bonds): Part B: Under the expectations hypothesis, what is the expected one-year interest rate starting in three years? Part C: Suppose the annual liquidity premium is 0.50%. What is the expected one-year interest rate starting in three years under the liquidity premium hypothesis? Part D: Suppose that you want to construct a one-year loan starting one year from now. What positions would you take today? Show all relevant cash flows. Hint for Part D: this will involve longing (buying) the 2-year bond and shorting (selling) the 1-year bond. Suppose you have the following yield curve (i.e., YTMs for the following zero-coupon bonds): Part B: Under the expectations hypothesis, what is the expected one-year interest rate starting in three years? Part C: Suppose the annual liquidity premium is 0.50%. What is the expected one-year interest rate starting in three years under the liquidity premium hypothesis? Part D: Suppose that you want to construct a one-year loan starting one year from now. What positions would you take today? Show all relevant cash flows. Hint for Part D: this will involve longing (buying) the 2-year bond and shorting (selling) the 1-year bond