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For large interest rate increases, the duration model over-predicts the fall in bond prices while for large interest rate decreases it under-predicts the increase in

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For large interest rate increases, the duration model over-predicts the fall in bond prices while for large interest rate decreases it under-predicts the increase in bond prices.' Explain this statement

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3ng Not yet answered Marked out of 8.00 '9' Flag question 'Fcr large interest rate increases. the duration model over-predicts the fall in bond prices while for large interest rate decreases it underpredicts the increase in bond prices.' Explain this statement

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