Question: Top rated (AAA) corporate bonds yield 0.0808 when intermediate grade (BBB) corporate bonds yield 0.0928. Rates change for both bonds due to economic conditions to

Top rated (AAA) corporate bonds yield 0.0808 when intermediate grade (BBB) corporate bonds yield 0.0928. Rates change for both bonds due to economic conditions to 0.0824 and 0.097 respectively. 

Calculate the Barron's Confidence Index before and after and report the difference.

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SOLUTION The Barrons Confidence Index is calculated as the yield spread ... View full answer

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