Question: Problem 12-16 Baa-rated bonds currently yield 8%, while Aa-rated bonds yield 6%. Suppose that due to an increase in the expected Inflation rate the yields

Problem 12-16 Baa-rated bonds currently yield 8%, while Aa-rated bonds yield 6%. Suppose that due to an increase in the expected Inflation rate the yields on both bonds increase by 11% a. Calculate the new confidence index? (Round your answer to 3 decimal places.) Confidence index

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