Video Excel Online Structured Activity: Expectations Theory Interest rates on 4-year Treasury securities are currently 5.2%, while 6-year Treasury securities yield 7.65%. 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 Bc Expectations Theory 4-yr. Treasury security yield 6-yr. Treasury security yield 5.20% 7.65% Algebraic solution: Total return earned on 6-year securities Total return earned on 4-year securities Yield on 2-yr. securities, 4 years from now Formulas #N/A #N/A #N/A 5 6 7 8 9 10 11 12 13 14 15 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