What would happen to the confidence index

Reference no: EM131015819

Suppose Baa-rated bonds currently yield 7.5%, while Aa-rated bonds yield 5.5%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.0%. What would happen to the confidence index? (Round your answers to 4 decimal places.)

Confidence index (Click to select)DecreasesIncreases from ________ to _________ .

Reference no: EM131015819

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