At the end of July,the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 7.65% and 8.48% respectively.At the end of August,the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 6.31% and 6.71% respectively.The confidence index __________ during August and technical analysts are likely to be ________.

Question

Quizplus · Accepted Answer

The confidence index is calculated by dividing the yield of top-rated bonds by the yield of intermediate-grade bonds. In August, the index increased (6.31/6.71 > 7.65/8.48), indicating increased investor confidence, making analysts likely to be bullish.

At the End of July,the Average Yields on 10 Top-Rated