Fixed Income Q96

96Analyst 1: Modified duration is useful and accurate for small changes in yield but it is not useful and accurate for larger changes in yield.
Analyst 2: Modified duration is useful and accurate for large changes in yield but it is not useful and accurate for small changes in yield.
Which analyst’s statement is most likely correct?

Option : A
Explanation : Modified duration is useful and accurate for small changes in yield but it is not useful and accurate for larger changes in yield.

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