13 Which of the following statements is/are false? Statement 1: Depending on whether a bond is trading at a discount or a premium to its par value, the duration rule may either overestimate or underestimate the value of a bond following an increase in its yield to maturity. Statement 2: The duration rule overestimates the value of a bond following an increase in its yield to maturity and overestimates the value of a bond following a decrease in its yield to maturity. Statement 3: The duration rule overestimates the value of a bond following an increase in its yield to maturity and underestimates the value of a bond following a decrease in its yield to maturity. Statement 4: The duration rule underestimates the value of a bond following an increase in its yield to maturity and overestimates the value of a bond following a decrease in its yield to maturity. Your choice: 18/25 Qs Statement 2 None of the statements Statements 1, 2, 3, and 4 Statement 4 Statement 3 Statement 1