Question: Given the following data on bond yields: This Year Last Year Yield on top-rated corporate bonds 8% 8.5% Yield on intermediate-grade corporate bonds 10.5 10

Given the following data on bond yields:

This Year

Last Year

Yield on top-rated corporate bonds

8%

8.5%

Yield on intermediate-grade corporate bonds

10.5

10

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?

Decreasing

Increasing

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