Expectations Theory 4-yr. Treasury security yield 6-yr. Treasury security yield Algebraic solution: |Total return earned on 6-year securities Total return earned on 4-year securities Yield on 2-yr. securities, 4 years from now Geometric solution: 1+ Total return earned on 6-year securities 1+ Total return earned on 4-year securities Yield on 2-yr. securities, 4 years from now 6.95% 7.55% Formulas \#N/A \#N/A \#N/A