Expected 3-year bond rate 3 years from now = (Be sure to show your work here). Rate are expected to because b. For the same above if there is a liquidity premium of 0.30% for a 3-year bond and [1.611% for a 6-year bond, under the liquidity premium theory [adjusting for liquidity premiums incorporated in bond rates) what is the new expected 3-year bond rate 3 years from now? Based on your answer, what are rates expected to do (riseffallfstay the same]? Explain why. Expected Rate with LP Rates Expected to (Be sure to show your work here). c. Explain how interest rates are determined under the market segmentation theory (very briefly discussed in Mug-IE Chapter 5 8c in the Module 2 lecture notes}. What is the flaw in this theory? Give an example for financial institutions type that might prefer short-term securities and a financial institution type that might prefer long- term securities. 6. lChp. 6: Market Efficiency: Discuss the market efficiency hypothesis. What criticisms have been made about the market efficiency hypothesis in light of the [1.3. subprime loan crisis? Give an example of a case where the market was not efficient {feei free to look up an article if you would like]. Do you think the market is efficient? Whv or whv not