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

9.35%

12.20%

10.90%

10

9.51%

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.

Answer% (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)