Video Excel Online Structured Activity: Expectations Theory Interest rates on 4-year Treasury securities are currently 6.8%, 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. Check My Work Reset Problem 1 Expectations Theory 4 4-yr. Treasury security yield 6-yr. Treasury security yield 6.80% 7.90% 6 Formulas Algebraic solution: Total retum eamed on 6-year securities Total retum eamed on 4-year securities Yield on 2-yr. securities, 4 years from now 8 9 #N/A #N/A Geometric solution: 1+ Total return earned on 6-year securities 1+ Total return earned on 4-year securities Yield on 2-yr. securities, 4 years from now #N/A #N/A #N/A