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expectations theory Save Submit Assignment for Grading Problem 6.08 (Expectations Theory) Question 9 of 10 Check My Work (1 remaining) eBook Interest rates on 4-year

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expectations theory

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Save Submit Assignment for Grading Problem 6.08 (Expectations Theory) Question 9 of 10 Check My Work (1 remaining) eBook Interest rates on 4-year Treasury securities are currently 5.2%, while 6-year Treasury securities yield 7.35%. 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 intermediate calculations. Round your answer to two decimal places. Questions Navigation Menu

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