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Suppose Baa-rated bonds currently yield 7.0 % , while Aa - rated bonds yield 5.0 %. Now suppose that due to an increase in the

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Suppose Baa-rated bonds currently yield 7.0 % , while Aa - rated bonds yield 5.0 %. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.2 % . What would happen to the confidence index? (Round your answers to 4 decimal places.) Confidence index from to 32 nces

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