|Period 1||Period 2||Period 3||Period 4|
|Average yield on 10 high-grade corporate bonds||5.25%||5.71%||5.06%||?|
|Yield on the Dow Jones average of 40 corprate bonds||6.53%||?||6.04%||4.95%|
|Yield spread (in basis points)||?||152||?||25|
are data that pertain to the corporate bond market. ?(Note?: Each? “period” below covers a span of 6? months.)
a. Compute the confidence index for each of the 4 periods listed above.
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You wonât have to worry about the quality and deadlinesOrder Paper Now
b. Assume the latest confidence index? (for period? 0, in?effect) amounts to 86.83%?, while the yield spread between? high- and? average-grade corporate bonds is 85 basis points. Based on your? calculations, what’s happening to bond yield spreads and the confidence index over the period of time covered in the problem?(i.e., from period 0 through period? 4)?
c. Based on the confidence index measures you? computed, what would be your overall assessment of the stock? market? In which one or more of the periods? (1 through? 4) is the confidence index?bullish? In which? one(s) is it? bearish?
a. Confidence index for period 1 is ___?%. ?(Round to two decimal? places.)
Confidence index for period 2 is ___?%. ?(Round to two decimal? places.)
Confidence index for period 3 is ___%. ?(Round to two decimal? places.)
Confidence index for period 4 is ___%. ?(Round to two decimal? places.)
b. The bond yield spreads fluctuates ___(up or down) and then (up or down) while the confidence index goes ___ (up or down) and then __ (up or down).
C. c. The overall market is ___ ( bullish or bearish or volatile). The most bullish period is ___( 1 or 2 or 3 or 4 ) while the most bearish period is __ (1 or 2 or 3 or 4).