If the bond market undergoes a large change in yield (for example, more than 100 basis points), then a bond's duration will
A) understate both the price appreciation when rates fall and the price decline when rates increase.
B) overstate both the price appreciation when rates fall and the price decline when rates increase.
C) overstate the price appreciation when rates fall and understate the price decline when rates increase.
D) understate the price appreciation when rates fall and overstate the price decline when rates increase.
Answer: D
You might also like to view...
Discuss techniques to use to set the stage for a presentation
What will be an ideal response?
When you are working on a large, complex sale you should try to achieve incremental commitment
Indicate whether the statement is true or false
The view that leadership performance is dependent upon personality and genetics comes from which theory?
a. Situational theory b. Trait Theory c. Contingency Theory d. Behavioural Theory
Describe the purpose of each type of graphic. Gantt chart