At the End of July, the Average Yields on 10

question 8

Multiple Choice

At the end of July, the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 7.65% and 8.42%, respectively. At the end of August, the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 6% and 6.71%, respectively. The confidence index ________ during August, and bond technical analysts are likely to be ________.

• A) increased; bullish
• B) increased; bearish
• C) decreased; bullish
• D) decreased; bearish

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Definitions:

Positive Moods

Emotional states that are characterized by feelings of happiness, satisfaction, or optimism.

James-Lange Theory

A theory of emotion proposing that physiological arousal precedes the experiencing of emotions.

Bodily Responses

Physiological reactions or responses of the body to internal or external stimuli.

Facial Expressions

The movements of the face that convey emotional states, reactions, or intentions to others.