Question: **Duration Problems** 1. Why is it important to be able to estimate the duration of a bond or a bond portfolio? 2. Explain why you

**Duration Problems**

1. Why is it important to be able to estimate the duration of a bond or a bond portfolio?

2. Explain why you agree or disagree with the following statement: "Determining the duration of a financial asset is a simple process."

3. Explain why the effective duration is a more appropriate measure of a complex financial instrument's price sensitivity to interest rate changes than is modified duration.

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