Question: begin{tabular}{|c|c|c|c|c|c|c|} hline & A & B & c & D & E & F hline 1 & Expectations Theory & & & & &

\begin{tabular}{|c|c|c|c|c|c|c|} \hline & A & B & c & D & E & F \\ \hline 1 & Expectations Theory & & & & & \\ \hline 2 & & & & & & \\ \hline 3 & 4-yr. Treasury security yield & 6.30% & & & & \\ \hline 4 & 6-yr. Treasury security yield & 7.90% & & & & \\ \hline 5 & & & & & & \\ \hline 6 & Algebraic solution: & & & Formulas & & \\ \hline 7 & Total return earned on 6-year securities & & & \#N/A & & \\ \hline 8 & Total return earned on 4-year securities & & & \#N/A & & \\ \hline 9 & Yield on 2-yr. securities, 4 years from now & & & \#N/A & & \\ \hline 10 & & & & & & \\ \hline 11 & Geometric solution: & & & & & \\ \hline 12 & 1+ Total return earned on 6-year securities & & & \#N/A & & \\ \hline 13 & 1+ Total return earned on 4 -year securities & & & \#N/A & & \\ \hline 14 & Yield on 2-yr. securities, 4 years from now & & & \#N/A & & \\ \hline 15 & & & & & & \\ \hline 16 & & & & & & \\ \hline \end{tabular} Excel Online Structured Activity: Expectations Theory Interest rates on 4-year Treasury securities are currently 6.3%, while 6 -year Treasury securities yleid 7.9%. The data has been collected in the Mierosoft Exce Online file below, Open the spreadsheet and perform the required analysis to answer the question below. If the pure expectations theory is correct, what does the market believe that 2 -year securities will be yielding 4 years from now? Calculate the yield using a geometric average. Do not round your intermediate calculations. Round your answer to two decimal places
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