Interest rates on 4-year Treasury securities are currently 6.9%, while 6-year Treasury securities yield 7.75%. 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.

Expectations Theory
4-yr. Treasury security yield	6.90%
6-yr. Treasury security yield	7.75%
Algebraic solution:			Formulas
Total return earned on 6-year securities			#N/A
Total return earned on 4-year securities			#N/A
Yield on 2-yr. securities, 4 years from now			#N/A
Geometric solution:
1 + Total return earned on 6-year securities			#N/A
1 + Total return earned on 4-year securities			#N/A
Yield on 2-yr. securities, 4 years from now			#N/A

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.