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please do part A Baa-rated bonds currently yield 6%, while Aa-rated bonds yield 4%. Suppose that due to an increase in the expected inflation rate,
please do part A
Baa-rated bonds currently yield 6%, while Aa-rated bonds yield 4%. Suppose that due to an increase in the expected inflation rate, the yieids on both bonds increase by 1.2%. Required: a. Calculate the new confidence index? Note: Round your answer to 3 decimal places. b. Would this be interpreted as bullish or bearish by a technical analyst Step by Step Solution
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