At the end of July, the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 7.65% and 8.42%, respectively. At the end of August, the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 6% and 6.71%, respectively. The confidence index ________ during August, and bond technical analysts are likely to be ________.
A) increased; bullish
B) increased; bearish
C) decreased; bullish
D) decreased; bearish

Question

Quizplus · Accepted Answer

CI (July) = 11eaaae8_8b5f_1460_a4b8_db3906a132b5_TB6474_11 = 0.91
CI (August) = 11eaaae8_8b5f_1461_a4b8_7ba045913644_TB6474_11 = 0.89
Since the confidence index decreased, this would be considered a bearish signal.

At the End of July, the Average Yields on 10