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E-LEARNING 1 The following yield data relates to a number of high-quality corporate bonds recorded at each of the three points in time: Yield to
E-LEARNING 1 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% fon 14.60% 9.30% 3 9.20% 12.80% 9.80% 5 9.32% 12.20% 10.90% 10 9.49% 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. % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23) VIOUS PAGE NEXT PAGE Type here to search O e 5 3 a Vo + X F4 F5 F6 FZ F8 F9 F10 F11 @ * 2 $ 4 3 % 5 F E & 7 o 6 V C 9 8 W E R T Y U of -- : A 4 S D[ F ] Gy Hi J
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