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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
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 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 05 basis points. Based on your calculations, what's happening to bond yield spreads and the contidence index over the period of time covered in the problem (.e. from penad 0 through period 4y? 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 %. (Round to two decimal places) Data Table - X Confidence index for period 2 is % (Round to two decimal places) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Confidence index for period 3 is %. (Round to two decimal places.) Confidence index for period 4 is % (Round to two decimal places.) b. The band yield spreads fluctuate and then while the contidence index goes c. The overall market is the most bullish period is while the most hearish period is Period 4 Period 1 5.32% Period 2 5.65% Period 3 5.11% and then (Select from 6.04% Average yield on 10 high-grade corporale bonds Yield on the Dow Jones average of 40 corporale bonds Yield spread in basis points) Confidence index 6.49% ? 150 20 Print Done Enter your answer in each of the answer boxes
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