Question: Explain Expectations Theory intuitively and with an example. In your example assume a flat yield curve with one - and two - year bonds at

Explain Expectations Theory intuitively and with an example. In your example assume
a flat yield curve with one- and two-year bonds at 6% and an expectation of next year's
yield curve being flat with one- and two-year bonds at 4%. Explain the theory only in
terms of the response to the expectation by investors with one-year or two-year horizon
dates.
Explain Expectations Theory intuitively and with an example. In your example

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