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Duration model q , the bond price drops for large interest rate increases and q , the bond price rises for large interest rate decreases.

Duration model

q,

the bond price drops for large interest rate increases and

q,

the bond price rises for large interest rate decreases.

overpredicts; overpredicts

underpredicts; underpredicts

overpredicts; underpredicts

underpredicts; overpredicts

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