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Part 1 Attempt 1/2 for 10 pts. Which one of the following statements IS true? Convexity adjustment always increases percentage price change compared to only
Part 1 Attempt 1/2 for 10 pts. Which one of the following statements IS true? Convexity adjustment always increases percentage price change compared to only using duration. Convexity adjustment always decreases percentage price change compared to only using duration. Convexity indicates a linear relation between duration and yield. Convexity adjustment increases percentage price change when yield decreases but decreases percentage price change when yield increases compared to only using duration. Convexity is a measure of credit risk. Submit
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