The Duration Rule Always ________ the Value of a Bond

question 69

Multiple Choice

The duration rule always ________ the value of a bond following a change in its yield.

• A) underestimates
• B) provides an unbiased estimate of
• C) overestimates
• D) The estimated price may be biased either upward or downward, depending on whether the bond is trading at a discount or a premium.

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