Question: Q5 Again, previous answer 8.87 is wrong interest rates on 4-year Treasury securities are currently 6.3%, while 6 -year Treasury securities yleld 7.25%. If the

Q5 Again, previous answer 8.87 is wrong

interest rates on 4-year Treasury securities are currently 6.3%, while 6 -year Treasury securities yleld 7.25%. If the pure expectations theory is correct, what does the market believe that 2 -year securities will be ylelding 4 years from now? Calculate the yleld using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places. %

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