Daily Price Volatility of a Bond Can Be Estimated by Multiplying

question 20

True/False

Daily price volatility of a bond can be estimated by multiplying the bond's modified duration by the adverse daily yield move.

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Definitions:

Merchantability

Refers to the guarantee that a product sold meets reasonable expectations of quality and usability for its intended purpose.

Implied Warranties

Legal guarantees that ensure a product meets certain minimum standards of quality and functionality, even if not expressly stated.

Implied Warranties

Legal guarantees automatically granted to a purchaser by law, ensuring that a product meets certain minimum quality standards.

Course of Performance

The conduct between parties to a contract that indicates what they consider acceptable performance under the contract's terms.