Question: For large interest rate increases, the duration model over-predicts the fall in bond prices while for large interest rate decreases it under-predicts the increase in

For large interest rate increases, the duration model over-predicts the fall in bond prices while for large interest rate decreases it under-predicts the increase in bond prices. Explain this statement.

Question 2 Not yet answered Marked out of 8.00 P Flag question 'For large interest rate increases, the duration model over-predicts the fall in bond prices while for large interest rate decreases it under-predicts the increase in bond prices.' Explain this statement Question 2 Not yet answered Marked out of 8.00 P Flag question 'For large interest rate increases, the duration model over-predicts the fall in bond prices while for large interest rate decreases it under-predicts the increase in bond prices.' Explain this statement

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