Expectations Theory Interest rates on 4-year Treasury securities are currently 6.7%, While 6-year Treasury securities yiedl 7.25% if the pure expectations theory is correct, what does the market...

Expectations Theory

Interest rates on 4-year Treasury securities are currently 6.7%, While 6-year Treasury securities yiedl 7.25% if the pure expectations theory is correct, what does the market belive that 2 year securities will be yeilding 4years from now?

Calculate the yeid using a geometric average.