The ratio of the average yield on 10 top-rated corporate bonds to the average yield on 10 intermediate-grade bonds is called the ________.
A) bond price index
B) confidence index
C) relative strength index
D) TRIN ratio

Question

Quizplus · Accepted Answer

The ratio of the average yield on 10 top-rated corporate bonds to the average yield on 10 intermediate-grade bonds is called the confidence index. This index is used to gauge investor confidence in the economy; higher ratios suggest greater confidence in the economy as investors are willing to choose lower yields for safer, top-rated bonds.

The Ratio of the Average Yield on 10 Top-Rated Corporate