The Error from Using Duration to Estimate the New Price

question 122

True/False

The error from using duration to estimate the new price of a fixed-income security will be less as the amount of convexity increases.

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Definitions:

Obsessive Thought

Persistent, unwanted, and intrusive thoughts that cause significant anxiety and distress.

Contaminated

The state of being impure or polluted by harmful substances, pathogens, or radiation.

Doorknob

A handle or knob attached to a door that is turned or pulled to open or close it.

Intrusive Thoughts

Unwanted and often distressing ideas, images, or impulses that randomly enter an individual's mind, causing discomfort or anxiety.