Question: Part B options are: (up or down) Listed here. I are data that pertain to the corporate bond market (Note: Each period below covers a

Listed here. I are data that pertain to the corporate bond market (Note: Each "period" below covers a span of 6 months.) a. Compute the confidence index for each of the four periods listed above b. Assume the latest confidence index (for periodo in effect) amounts to 86.83%, while the yield spread between high- and average-grade corporate bonds is 85 basis points. Based on your calculations, what's happening to bond yiold spreads and the confidence index over the period of time covered in the problem (1.o., from poriodo through period 4)? c. Based on the confidence index measures you computed, what would be your overall assessment of the stock market? In which one or more of the periods (1 through 4) is the confidence index bullish? In which one(s) is it bearish? a. Confidence index for period 1 is % (Round to two decimal places) Confidence index for period 2 is % (Round to two decimal places.) Confidence index for period 3 is % (Round to two decimal places.) Confidence index for period 4 is %. (Round to two decimal places) b. The bond yield spreads fluctuate and then while the confidence index 9005 and then (Select from the drop-down menus.) c. The overall market is The most bullish period is while the most bearish poriod is (Select from the drop-down menus.) V Period 4 Period 1 5.31% Period 2 5.72% Period 3 5.14% 2 6.48% 5.97% 4.91% Average yield on 10 high-grade corporate bonds Yield on the Dow Jones average of 40 corporate bonds Yield spread (in basis points) Confidence index ? 154 ? 22
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