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The use of modified duration as a predictor of the impact of changes in market yields on the market value of bond portfolios I. underestimates

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The use of modified duration as a predictor of the impact of changes in market yields on the market value of bond portfolios I. underestimates the % increase in bond prices when yields fall. II. underestimates the % decrease in bond prices when yields rise. III. overestimates the % increase in bond prices when yields fall. IV. overestimates the % decrease in bond prices when yield rise. O I and IV only. O II and III only. OIV only. I and III only. O II and IV only

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