Question: Which statement is true? a. Duration is good for estimating the impact of large interest rate changes. b. The duration estimate is less accurate, the

Which statement is true?

a. Duration is good for estimating the impact of large interest rate changes.

b. The duration estimate is less accurate, the less convex the bond price/yield relationship.

c. Effective duration is used to measure the price risk of the bonds with call options.

d. The tangent line always overestimates the actual price.

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