Question: The following two statements on matrix pricing were made: Statement 1: Matrix pricing is a process to estimate the price of an actively-traded bond. Statement

The following two statements on matrix pricing were made: Statement 1:

The following two statements on matrix pricing were made: Statement 1: "Matrix pricing is a process to estimate the price of an actively-traded bond." Statement 2: "Matrix pricing involves application of modified duration." Both statements are correct. Exactly one statement is correct. None of the statements is correct. C

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