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Video Excel Online Structured Activity: Expectations Theory Interest rates on 4-year Treasury securities are currently 6.05%, while 6 year Treasury securities yield 7.9%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet 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. Check My Work Reset Problem B D E F G A Expectations Theory 34-yr. Treasury security yield 6-yr. Treasury security yield 6.05% 7.90% Formulas #N/A #N/A #N/A 5 Algebraic solution. 7 Total return earned on 6-year securities B Total return earned on 4-year securities Yield on 2-yr. securities, 4 years from now 0 1 Geometric solution 2 1 + Total return earned on 6-year securities 3 1 + Total return earned on 4-year securities 14 Yield on 2-yr. securities 4 years from now 15 16 17 18 #N/A #N/A #N/A