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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?

  1. Because duration is a linear approximation for a convex relation.
  2. Because duration is a nonlinear approximation for a convex relation.
  3. Because duration is a convex approximation of a linear relation.
  4. Because duration is a convex approximation of a nonlinear relation.

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