单选题
With respect to an option-free bond, when interest-rate changes are large, the duration measure will overestimate the: A. fall in a bond's price from a given increase in interest rates. B. increase in a bond's price from a given increase in interest rates. C. final bond price from a given increase in interest rates.
【正确答案】
A
【答案解析】When interest rates increase by 50 - 100 basis points or more, the duration measure overestimates the decrease in the bond's price.