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Interest rates on 4-year Treasury securities are currently 5.2%, while 6-year Treasury securities yield 7.3%. If...

Interest rates on 4-year Treasury securities are currently 5.2%, while 6-year Treasury securities yield 7.3%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now?

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R2=7.3 % R,= 5.2% I H R. 4 year 6 year կ 2 - (I + R.) * (1 + R) (1+R2) (1+0.052) (1+2) = (1+0.0738 (1.052) X (1+ R) (1.073) (

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