Suppose that you use duration to approximate the changes in bond price. When interest rate goes up, the absolute value of duration approximation is than the absolute value of actual bond price changes. When interest rate goes down, the absolute value of duration approximation is than the absolute value of actual bond price changes. A. smaller, larger B. smaller, smaller C. larger, larger D. larger, smaller

Smaller , Larger A

Explanation:

When interest rates are changed , the  shorter the duration , the less the volatility and the higher the duration , the more the volatility. This explains the reason that duration decrease at a higher rate when interest increases and vice versa.

A slight increases in the interest rate triggers a higher fall in the duration and an slight decrease in the interest rate triggers a higher rise in the duration

hi noah!

the first time you break a rule, you get a warning.

if you continue to break rules you get kicked out for a certain amount of time.

so, to answer your question 1.

hope this buddy!

- courtney

answer; schedule c;