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Which of the following are true? Convexity causes the duration approximation to _____. Choose all that apply. A)understate price change when YTM increases B)understate price

Which of the following are true? Convexity causes the duration approximation to _____. Choose all that apply.

A)understate price change when YTM increases

B)understate price change when YTM decreases

C)overstate price change when YTM increases

D)overstate price change when YTM decreases

E)understate the price of the bond when YTM increases

F)understate the price of the bond when YTM decreases

G)overstate the price of the bond when YTM increases

H)overstate the price of the bond when YTM decreases

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