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Why is duration a more accurate measure for small changes in yield than for large changes in yield? Because duration is a linear approximation for
Why is duration a more accurate measure for small changes in yield than for large changes in yield?
- Because duration is a linear approximation for a convex relation.
- Because duration is a nonlinear approximation for a convex relation.
- Because duration is a convex approximation of a linear relation.
- Because duration is a convex approximation of a nonlinear relation.
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