Question: Subset B options: up; down Listed here, are data that pertain to the corporate bond market. (Note: Each period below covers a span of 6

Subset B options: up; down Listed here, are data that pertain toSubset B options: up; down

Listed here, 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 4 periods listed above b. Assume the latest confidence index (for period 0 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 yield spreads and the confidence index over the period of time covered in the problem (ie., from period 0 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 96 (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 D96 (Round to two decimal places ) b. The bond yield spreads fluctuate | | and then | | , while the confidence index goes | c. The overall market is | and then | (Select from the drop-down menus.) The most bullish period iswhie the most bearish period is (Select from the drop-down menus.) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet) Period 1 Period 2 Period 3 Period 4 5.29% Average yield on 10 high-grade 5.74% 5.13% corporate bonds Yield on the Dow Jones average of 6 46% 60196 4.94% 0 corporate bonds Yield spread (in basis points) Confidence index 150 25 Print Done

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