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Given the following data on bond yields: This Year Last Year Yield on top-rated corporate bonds...

Given the following data on bond yields: This Year Last Year Yield on top-rated corporate bonds 9.6 % 10.1 % Yield on intermediate-grade corporate bonds 12.1 11.6 a. Calculate the confidence index this year and last year. (Round your answers to 4 decimal places.) Confidence Index This year Last year b. Is the confidence index increasing or decreasing? Increasing Decreasing

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Answer #1

A-

this Year

last Year

Yield on Top rated corporate bonds

9.6

10.1

Yield on Intermediate grade corporate bonds

12.1

11.6

confidence index =Yield on top rated corporate bonds/yield on intermediate grade corporate bonds

9.6/12.1

10.1/11.6

confidence index =Yield on top rated corporate bonds/yield on intermediate grade corporate bonds

0.7934

0.8707

B-

decreasing
0 0
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