Use the following data on bond yield: This Year Last Year Yield on top-rated corporate bonds 5.7 % 9.9 % Yield on intermediate-grade corporate bonds 7.7 11.6

a. Calculate the change in the confidence index from last year to this year. (Round your answers to 3 decimal places.)

b. Is the confidence index rising or falling? Rising Falling

This Year 5.7% 7.7 Last Year 9.9% 11.6 Yield on top-rated corporate bonds Yield on intermediate-grade corporate bonds Confidence Index This year Last year