Suppose 2-year Treasury bonds yield 4.00% while 4-year T-bonds yield 5.5%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for T-bonds is zero, what is the yield on a 2-year T-bond expected to be two years from now? Round the calculations to 4 decimal places and final answer to 2 decimal places. intermediate

21. Suppose 2-year Treasury bonds yield 4.00% while 4 -year T-bonds yield 5.5%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for T-bonds is zero. what is the yield on a 2-year T-bond expected to be two years from now? Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places