Expectations Theory 5.75% 4-yr. Treasury security yield 6-yr. Treasury security yield Algebraic solution Total return earned on 6-y securities Total return earned on 4-year securities Yield on 2-yr. securities, 4 years from now Formulas #N/A #N/ Geometric solution: +Total return earned on 6-year securities +Total return earned on 4-year securities Yield on 2-yr. securities, 4 years from now #N/A #N/A Excel Online Structured Activity: Expectations Theory Interest rates on 4-year Treasury securities are current y 5.75 hile 6-year Treasury securities yield 7.6% The data has been co ected in the Microsoft Excel Online file belon Open the spreadsheet and perform the required analysis to answer the ues on below. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calcuae the yield using a geometric average. Do not round your intermediate calculations. Round your answer to two decimal places calulations. Round yo