Question: Baa - rated bonds currently yield 6 % , while Aa - rated bonds yield 4 % . Suppose that due to an increase in

Baa-rated bonds currently yield 6%, while Aa-rated bonds yield 4%. Suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.3%.
Required:
Calculate the new confidence index?
Note: Round your answer to 3 decimal places.
Would this be interpreted as bullish or bearish by a technical analyst?

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