Interest rates on 4-year Treasury securities are currently 6.65%, while 6-year Treasury securities yield 7.9%. 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 yield using a geometric average. Do not round your intermediate calculations. Round your answer to two decimal places. Expectations Theory 4-yr. Treasury security yield 6-yr. Treasury security yield 6,65% 7.90% 5 Formulas #N/A #N/A #N/A 8 6 Algebraic solution: 7 Total return earned on 6-year securities Total return earned on 4-year securities 9 Yield on 2-yr. securities, 4 years from now 10 11 Geometric solution: 12 1 + Total return earned on 6-year securities 13 1 + Total return earned on 4-year securities 14 Yield on 2-yr. securities, 4 years from now 15 16 17 #N/A #N/A #N/A