1. Since bond prices are convex in yield to maturity,
   1. For large r decreases, D overpredicts the fall in bond prices and for large r increases, D underpredicts the increase in bond prices
   2. None of the options are correct
   3. When bond price decreases, D gives a bigger decreases compared to the decrease obtained from first principles and when bond price increases, D gives a much smaller increase compared to the increase obtained from first principles
   4. D overpredicts the fall in bond prices for both: large r increases and large r decreases
   5. D underpredicts the fall in bond prices for both: large r increases and large r decreases