Question: Suppose that the following weekly interest rate volatility estimates are computed as: absolute rate change = 3.85 basis points and percentage rate change = 2.14%.

Suppose that the following weekly interest rate volatility estimates are computed as: absolute rate change = 3.85 basis points and percentage rate change = 2.14%.
Answer the below questions.
(a) What is the annualized volatility for the absolute rate change?
(b) What is the annualized volatility for the percentage rate change?

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