Question: Some investors document that Baa-rated bonds currently yield 9%, while Aa-rated bonds yield 4%. Now suppose that due to an increase in the expected inflation

Some investors document that Baa-rated bonds currently yield 9%, while Aa-rated bonds yield 4%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 2%. What would happen to the confidence index? Would this be interpreted as bullish or bearish by a technical analyst? Explain! (3 points)

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