Question: BONUS 2 points: Baa-rated bonds currently yleld 6.5%, while Aa-rated bonds yield 5.5%. Suppose that due to an Increase in the expected inflation rate, the

BONUS 2 points: Baa-rated bonds currently yleld 6.5%, while Aa-rated bonds yield 5.5%. Suppose that due to an Increase in the expected inflation rate, the yields on both bonds increase by 1%. a. What would happen to the confidence index? b. Would this be interpreted as bullish or bearish by a technical analyst

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