### Bond Yield Data AnalysisUse the following data on bond yield:| Yield Type | This Year | Last Year ||-------------------------------------------------|------------|-----------|| Yield on top-rated corporate bonds | 5.4% | 9.6% || Yield on intermediate-grade corporate bonds | 7.4% | 11.4% |**a. Calculate the change in the confidence index from last year to this year. (Round your answers to 3 decimal places.)** Note: Answer is complete but not entirely correct. Confidence Index This year 56.250 ❌ Last year 64.912 ❌ #### Explanation of Tables:1. **Data Table:** - The first table presents the bond yield percentages for top-rated and intermediate-grade corporate bonds for the current and previous years. - The bond yields for this year for top-rated and intermediate-grade corporate bonds are 5.4% and 7.4%, respectively. - The bond yields for last year for top-rated and intermediate-grade corporate bonds are 9.6% and 11.4%, respectively. 2. **Confidence Index Table:** - The second table shows the calculated confidence index for the current and previous years. - This year’s confidence index is 56.250. - Last year’s confidence index is 64.912. - The results have been marked as incorrect, suggesting an error in computation or rounding. ### Note:Students should revisit the formula and calculations used to determine the confidence index ensuring the correct application and rounding off to three decimal places.

The Barron's Confidence Index gauges investor confidence by comparing the average yield of…

Use the following data on bond yield: Yield on top-rated corporate bonds Yield on intermediate-grade corporate bonds > Answer is complete but not entirely correct. Confidence Index This year Last year This Year 56.250 X 64.912 X 5.4% 7.4 Last Year a. Calculate the change in the confidence index from last year to this year. (Round your answers to 3 decimal places.) 9.6% 11.4

Use the following data on bond yield: Yield on top-rated corporate bonds Yield on intermediate-grade corporate bonds > Answer is complete but not entirely correct. Confidence Index This year Last year This Year 56.250 X 64.912 X 5.4% 7.4 Last Year a. Calculate the change in the confidence index from last year to this year. (Round your answers to 3 decimal places.) 9.6% 11.4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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