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Suppese Baa-rated bonds currently yield 6%, while Aa-rated bonds yield 4%. Now suppose that due to an increase in the expected inflation rate, the yields

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Suppese Baa-rated bonds currently yield 6%, while Aa-rated bonds yield 4%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1%. ( QLO 9-4) a. What would happen to the confidence index? b. Would this be interpreted as bullish or bearish by a technical analyst? c. Does this make sense to you

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