9) The following yield data relates to a number of high-quality corporate bonds recorded at each of the three points in time: Yield to Maturity Maturity (years) 5 years ago 2 years ago Today 1 9

9) The following yield data relates to a number of high-quality corporate bonds recorded at each of the three points in time: Yield to Maturity Maturity (years) 5 years ago 2 years ago Today 1 9.10% 14.60% 9.30% 3 9.20% 12.80% 9.80% 5 9.38% 12.20% 10.90% 10 9.6% 10.90% 12.60% Required: Consider the data from 5 years ago. According to the expectations hypothesis, what approximate return did investors expect a 5-year bond to pay as of today? Hint: think of expectations as a percentage difference in returns between the present and the future.