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10. Problem 6.08 (Expectations Theory) otlook Interest rates on 4-year Treasury securities are currently 6.35%, while 6-year Treasury securities yield 7.3%. Ir the pure expectations

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10. Problem 6.08 (Expectations Theory) otlook Interest rates on 4-year Treasury securities are currently 6.35%, while 6-year Treasury securities yield 7.3%. Ir the pure expectations theory is correct What does the market beleve that 2-year securities will be yielding 4 years from now? Calculate the yielduling a geometric average. Do not round Intermediate calculations. Round your answer to two decimal places REE 7. imited 9. Problem 6.07 (Expectations Theory) ebook One-year Treasury securities yield 4.7%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 6.15. If the pure expectations theory is correct, what is the yield today for 2year Treasury Securities Calculate the yield using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places. EE 7

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