Question: Top rated (AAA) corporate bonds yield 0.067 when intermediate grade (BBB) corporate bonds yield 0.0843. Rates change for both bonds due to economic conditions to
Top rated (AAA) corporate bonds yield 0.067 when intermediate grade (BBB) corporate bonds yield 0.0843. Rates change for both bonds due to economic conditions to 0.0704 and 0.097 respectively. Calculate the Barron's Confidence Index before and after and report the difference, i.e. New CI - Old CI. Be able to interpret this change in CI on an exam.
Group of answer choices
-0.0720
-0.0773
-0.0664
-0.0690
-0.0748
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