P6-7 Term structure of interest rates The following yield data for a number of highest-. quality corporate bonds existed at each of the three points in time noted. Time to maturity (years) Yield 5 years ago 2 years ago Today 9.1% 14.6% 9.3% 9.2 12.8 9.8 9.3 12.2 10.9 9.5 9.5 10.9 12.6 10.7 12.7 10.5 10.5 13.5 12.9 20 20 + a. On the same set of axes, draw the yield curve at each of the three given times. b. Label each curve in part a with its general shape (downward sloping, upward sloping, flat). c. Describe the general interest rate expectation existing at each of the three times. d. Examine the data from 5 years ago. According to the expectations theory, what approximate return did investors expect a 5-year bond to pay as of today? P6-7 Term structure of interest rates The following yield data for a number of highest-. quality corporate bonds existed at each of the three points in time noted. Time to maturity (years) Yield 5 years ago 2 years ago Today 9.1% 14.6% 9.3% 9.2 12.8 9.8 9.3 12.2 10.9 9.5 9.5 10.9 12.6 10.7 12.7 10.5 10.5 13.5 12.9 20 20 + a. On the same set of axes, draw the yield curve at each of the three given times. b. Label each curve in part a with its general shape (downward sloping, upward sloping, flat). c. Describe the general interest rate expectation existing at each of the three times. d. Examine the data from 5 years ago. According to the expectations theory, what approximate return did investors expect a 5-year bond to pay as of today