2.

Which of the following statements about modified duration is FALSE?

A. Estimating the change in price of a bond using modified duration is accurate only for small changes in yield-in-maturity

B. A bond's modified duration enables you to estimate the change in the bond's price for a given change in yield-to-maturity

C. For a large change in yield-to-maturity, an estimation of the bond's price change based only on modified duration is subject to error

D. Modified duration measures the non-linear changes in the bond's price due to changes in yield-to-maturity

E. Modified duration is essentially the slope of the price-yield curve for a bond