3.If the pure expectations theory of the term structure is correct, whichof the following statements would be CORRECT?a.An upward sloping yield curve would imply that interest rates areexpected to be lower in the future.b.If a 1-year Treasury bill has a yield to maturity of 7% and a 2-yearTreasury bill has a yield to maturity of 8%, this would imply themarket believes that 1-year rates will be 7.5% one year from now.c.The yield on a 5-year corporate bond should always exceed the yieldon a 3-year Treasury bond.d.Interest rate price risk is higher on long-term bonds, butreinvestment rate risk is higher on short-term bonds.e.Interest rate price risk is higher on short-term bonds, butreinvestment rate risk is higher on long-term bonds