Question: Save Submit Assignment for Grading 5 Problem 6.07 (Expectations Theory) Question 5 of 10 Check My Work (1 remaining) eBook One-year Treasury securities yield 3.65%.

 Save Submit Assignment for Grading 5 Problem 6.07 (Expectations Theory) Question

Save Submit Assignment for Grading 5 Problem 6.07 (Expectations Theory) Question 5 of 10 Check My Work (1 remaining) eBook One-year Treasury securities yield 3.65%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 6.9%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places. %

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