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Suppose Baa-rated bonds current y yield 8.4%, while Aa-rated bonds yield 6.4%. No suppose that due to an increase n he expect

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Soluton As en Baa-aďted bonds currenty yield = OYX bueto an tncrease in the expected inbaton hatr Hu ield on both bonch Incr

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Suppose Baa-rated bonds current y yield 8.4%, while Aa-rated bonds yield 6.4%. No suppose that due to an increase n he expected inflation rata he would happen to the confidence index? (Round your ans...
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