Question: Given the following data on bond yields: This Year Last Year Yield on top-rated corporate bonds 8.8% 9.3% Yield on intermediate-grade corporate bonds 11.3 10.8

Given the following data on bond yields:

This Year Last Year
Yield on top-rated corporate bonds 8.8% 9.3%
Yield on intermediate-grade corporate bonds 11.3 10.8

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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