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thallium81 thallium81
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2 years ago
If the bond market undergoes a large change in yield (for example, more than 100 basis points), then a bond's modified duration will

▸ understate both the price appreciation when rates fall and the price decline when rates increase.

▸ overstate both the price appreciation when rates fall and the price decline when rates increase.

▸ overstate the price appreciation when rates fall and understate the price decline when rates increase.

▸ understate the price appreciation when rates fall and overstate the price decline when rates increase.
Textbook 
Fundamentals of Investing

Fundamentals of Investing


Edition: 14th
Authors:
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Keleko12Keleko12
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2 years ago
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