Question: Video Excel Online Structured Activity: Expectations Theory Interest rates on 4-year Treasury securities are currently 5.85%, while 6-year Treasury securities yield 7.55%. The data

Video Excel Online Structured Activity: Expectations Theory Interest rates on 4-year Treasury

Video Excel Online Structured Activity: Expectations Theory Interest rates on 4-year Treasury securities are currently 5.85%, while 6-year Treasury securities yield 7.55%. 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 vield using a geometric average. Do not round your intermediate calculations. Round your answer to two decimal places. %

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