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Suppose Baa-rated bonds currently yield 89%, while Aa-rated bonds yield 6 9% Now suppose that due to an increase in the expected inflation rate, the

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Suppose Baa-rated bonds currently yield 89%, while Aa-rated bonds yield 6 9% Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1 5% What would happen to the confidence index? (Round your answers to 4 decimal pieces.)

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