With respect to an option-free bond, when interest-rate changes are large, the duration measure will overestimate the:
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A) |
fall in a bond's price from a given increase in interest rates. | |
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B) |
increase in a bond's price from a given increase in interest rates. | |
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C) |
final bond price from a given increase in interest rates. | |
When interest rates increase by 50-100 basis points or more, the duration measure overestimates the decrease in the bond’s price | 
发表于 2011-3-30 16:19
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