A.
the interest rate on long-term bonds will equal an average of short-term interest rates that people expect to occur over the life of the long-term bonds plus a liquidity premium.
B.
buyers of bonds may prefer bonds of one maturity over another, yet interest rates on bonds of different maturities move together over time.
C.
even with a positive liquidity premium, if future short-term interest rates are expected to fall significantly, then the yield curve will be downward-sloping.
E.
only A and B of the above.