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Which of the following statements are true? [I] The absolute pricing error in percentage terms from a duration estimate is smaller when the interest rate
Which of the following statements are true? [I] The absolute pricing error in percentage terms from a duration estimate is smaller when the interest rate change (%) is smaller. [II] Consider a large interest rates change. The predicted absolute % change in bond price from a duration estimate will likely be larger than the actual % change in bond price.
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