Question
Which of the following are true? Convexity causes the duration approximation to _____. Choose all that apply. understate price change when YTM increases understate price
Which of the following are true? Convexity causes the duration approximation to _____. Choose all that apply.
understate price change when YTM increases
understate price change when YTM decreases
overstate price change when YTM increases
overstate price change when YTM decreases
understate the price of the bond when YTM increases
understate the price of the bond when YTM decreases
overstate the price of the bond when YTM increases
overstate the price of the bond when YTM decreases
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
10th Edition
053875446X, 978-0538754460
