Question: Using the following data on bond yields: This Year Last Year Yield on top-rated corporate bonds 4 % 7 % Yield on intermediate-grade corporate bonds

Using the following data on bond yields:

This Year Last Year
Yield on top-rated corporate bonds 4 % 7 %
Yield on intermediate-grade corporate bonds 6 % 9 %

a. Calculate the confidence index this year and last year. (Round your answers to 4 decimal places.)

b. Is the confidence index increasing or decreasing?

  • Increasing

  • Decreasing

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