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Problem 6-8 Expectations Theory Interest rates on 4-year Treasury securities are currently 6.15%, while 6-year...

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Finance

Problem 6-8 Expectations Theory

Interest rates on 4-year Treasury securities are currently 6.15%, while 6-year Treasury securities yield 7.85%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Round your answer to two decimal places.

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