If short$-$term interest rates are expected to average $2\%$ per year, over the next $2$ years, then the $\_\_\_$ theory predicts that $2-$year bonds will have an interest rate of $\_\_\_$ as well

Question $14$ options:

$1)$

Liquidity preference theory; more than $2\%$

$2)$

Market segmentation theory; Exactly $2\%$

$3)$

Expectations theory; less than $2\%$

$4)$

Expectations theory; Exactly $2\%$

$5)$

Liquidity preference theory; Exactly $2\%$