1 eBook One-year Treasury securities yield 3.35%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 3.8%. 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. % EU eBook 5%, An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross- product between the real rate and inflation. A 6-year security with no maturity, default, or liquidity risk has a yield of 17.60%. If the real risk-free rate is what average rate of inflation is expected in this country over the next 6 years? (Hint: Refer to "The Links Between Expected Inflation and Interest Rates: A Closer Look".) Do not round intermediate calculations, Round your answer to the nearest whole number. %