Using the following data on bond yields:

	This Year		Last Year
Yield on top-rated corporate bonds	5.5	%	8.5	%
Yield on intermediate-grade corporate bonds	7.5	%	10.5	%

a. Calculate the confidence index this year and last year. (Round your answers to 4 decimal places.)

b. Is the confidence index increasing or decreasing?

• Increasing

• Decreasing