THE Video Excel Online Structured Activity: Expectations Theory Interest rates on 4-year Treasury securities are currently 6.9%, while 5-year Treasury securities yield 7.4%. 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. HULI 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. % Check My Work Reset Problem X Excel template Saved File Review View Help Tell me wha abe Home Insert Formulas Data X Arial 10 BI U Dab Paste A - AM Clipboard Font General $% 60 00 .00 0 Conditional Formatting Undo Alignment Number D27 B D E F W N 6.90% 7.40% A Expectations Theory 2 3 4-yr. Treasury security yield 4 6-yr. Treasury security yield 5 6 Algebraic solution: 7 Total return earned on 6-year securities 8 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 18 Formulas #N/A #N/A #N/A #N/A #N/A #N/A