Question: Required: Suppose Baa - rated bonds currently yield 7 . 3 % , while Aa - rated bonds yield 5 . 3 % . Now

Required:
Suppose Baa-rated bonds currently yield 7.3%, while Aa-rated bonds yield 5.3%. Now suppose that due to an increase in the expected infiation rate, the yields on both bonds increase by 1.5%. What would happen to the confidence index?
Noter Round your answers to 4 decimal places.
Confidence index
from
Required: Suppose Baa - rated bonds currently

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