When the yield of a bond increases, the duration based percentage change in price is higher than the percentage change based on true price. True or False.
Added by Kevin C.
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Duration is a measure of a bond's sensitivity to changes in interest rates. It takes into account the bond's maturity, coupon rate, and yield to maturity. Now, let's consider the statement. When the yield of a bond increases, the duration-based percentage change Show more…
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