ten * Excel File Insert Data Review Home X Cut View 10 A Help - A A E LU Tell me what you want to do = = 29 Wrap Text E Merge & Center - Alignment Copy - Paste BTUR Format Painter Clipboard Undo FE 1 Expectations Theory 3 4 4-yr. Treasury security yield 6-yr. Treasury security yield 5.75% 730% Formulas 6 7 8 9 Algebraic solution: Total return eamed on 6-year securities Total return eamed on 4 year securities Yield on 2-yr. securities, 4 years from now HINA N/A ANA 11 Geometric solution: 12 1 + Total return earned on 6-year securities 13 1 + Total return earned on 4-year securities 14 Yield on 2-yr securities, 4 years from now #NA Sheet1 @ e Video Excel Online Structured Activity: Expectations Theory Interest rates on 4 year Treasury securities are currently 5.75%, while 6 year Treasury securities yield 7.3%. 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