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Suppose Baa-rated bonds currently yield 9.0%, while Aa-rated bonds yield 7.0%. Now suppose that due to an increase in the expected inflation rate, the yields

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Suppose Baa-rated bonds currently yield 9.0%, while Aa-rated bonds yield 7.0%. Now suppose that due to an increase in the expected inflation rate, the yields on both increase by 1.5%. What would happen to the confidence index? (Round your answers to 4 decimal places.)

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