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The convexity in price-yield relationship and the consequent approximation error of using duration formulae to calculate price change is essentially caused by the relationship that:
The convexity in price-yield relationship and the consequent approximation error of using duration formulae to calculate price change is essentially caused by the relationship that:
Select one:
a.the negative relation between duration and coupon rate
b.duration decreases when maturity decreases
c.duration decreases when coupon payment frequency decreases
d.duration decreases when market interest rate decreases
e.duration decreases when market interest rate increases
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