Question $8$

How will the realized yield on a long$-$term bond differ depending on whether the expectation hypothesis $($EH$)$ or liquidity preference theory $($LPT$)$ hold?

A$.$ Cannot tell for other reasons not mentioned above

B$.$ Cannot tell without knowing the slope of the term structure

C$.$ Higher realized yield if the LPT holds

D$.$ Higher realized yield if the EH holds

E$.$ Same realized yield