Now it$$s time for you to practice what you$$ve learned.

Suppose the market offers the following Treasury securities:

Treasury security

Yield

$($Percent$)$

$1$year $4\mathrm{.}90$

$2$year $6\mathrm{.}10$

$3$year $7\mathrm{.}60$

$4$year $8\mathrm{.}90$

$5$year $10\mathrm{.}10$

$6$year $11\mathrm{.}60$

Make the necessary calculations and complete the following table using the data on the securities yields and the pure expectation theory.

Investment Yield

$1$year Treasury security, $1$ year from now

$2$year Treasury security, $2$ years from now

$3$year Treasury security, $1$ year from now

$4$year Treasury security, $2$ years from now